Partnership
16 previous year questions.
High-Yield Trend
Chapter Questions 16 MCQs
Star and Moon were partners in a firm sharing profits in the ratio of 3 : 2. On 31st March, 2024, the Balance Sheet of the firm was as follows: 
They admitted 'Sun' into partnership on 1st April, 2024 for 1/10 share. It was agreed as follows:
(a) 'Sun' brings ₹6,00,000 for his share of capital but could not bring goodwill in cash.
(b) Goodwill is valued at ₹4,00,000.
(c) Provision on debtors is needed 10%.
(d) Interest on Bank Loan for 6 months is due @ 12% p.a.
(e) Liability to workers is ₹15,000 against Workmen Compensation Reserve.
(f) Unrecorded stock ₹40,000 is taken by Star at ₹38,000.
Prepare Revaluation Account and Partners' Capital Account.
A partnership firm earned net profits during the last three years as follows: 
The capital employed in the firm throughout the above mentioned period has been ₹8,00,000. Having regard to the risk involved, 15% is considered to be a fair return on the capital. The remuneration of all the partners during this period is estimated to be ₹2,00,000 per annum.
Calculate the value of Goodwill on the basis of the following:
(a) Two years' purchase of super profits earned on average basis during the above mentioned 3 years.
(b) Capitalisation of Average Profit method.
