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Enumerate two main steps involved in valuing Goodwill according to Super Profit Method.

For Calculating goodwill under this method, the steps are: Step 1: Calculate the Average Capital Employed as follows: Opening Capital Employed + Closing Capital Employed/2 Capital Employed = Capital + Reserves – Fictitious Assets – Nor-trade Investments – Goodwill or…

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Ash, Nisha, and Disha shared profits and losses in the ratio of 3 : 2 : 1 respectively. With effect from 1st April 2023, they agreed to share profits equally. The goodwill of the firm was valued at ₹ 18,000. Pass necessary Journal entries to record the above change.

Pranav, Karan, and Rahim are partners sharing profits and losses in an agreed ratio. With effect from 1st April 2023, they agreed to share profit in the ratio of 3 : 3 : 4. To arrive at the new ratio, Rahim takes 1/5th share equally from Pranav and Karan. Calculate the old profit-sharing ratio.

A, B, and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate the new profit sharing ratio, sacrificing ratio, and gaining ratio in each of the following cases:

X, Y, and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April 2023, they decide to share profits and losses equally. Calculate each partner’s gain or sacrifice due to the change in the ratio.

Ashok, Bhim, and Chetan are sharing profits and losses in a ratio of 5 : 3 : 2. With effect from 1st April 2023, they decide to share profits and losses in the ratio of 5 : 2: 3. Calculate each partner’s gain or sacrifice due to the change in ratio.

Om and Shyam are sharing profits and losses equally. With effect from 1st April 2023, they agree to share profits in the ratio of 4 : 3. Calculate the individual partner’s gain or sacrifice due to the change in ratio.

Enumerate two main steps involved in valuing Goodwill according to Super Profit Method.