A firm earned ₹60,000 as profit, the normal rate of return being 10%. Assets of the firm are ₹ 7,20,000 (excluding goodwill) and Liabilities are ₹2,40,000. Find the value of Goodwill by Capitalisation of Average Profit method.

Calculate the amount of adjusted profit for the year ended 31st March 2021 for the purpose of valuation of Goodwill from the following information: Profit for the year ended 31st March 2021: ₹ 80,000 On 1st July, 2020, a major plant repair was undertaken for ₹10,000 which was cha…

Valuation of Goodwill takes place on which of the following occasions: (A) Incorporation of a new business (B) Change in profit sharing ratio (C) Amalgamation of partnership firms (D) Admission of a partner (E) Dissolution of firm or closure of business Choose the correct answer…

Balance in the Investment Fluctuation Reserve, after meeting the loss on revaluation of Investments, at the time of admission of a partner will be transferred to:

Following are the factors affecting goodwill except

For computing the Goodwill by capitalisation of average profit method, the following sequence would be followed: (A) Capitalise the average profit on the basis of normal rate of return (B) Ascertain the firm capital = Total Assets - outside liabilities (C) Ascertain the average p…

In the absence of any information regarding the acquisition of share in the profit of retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share in the:

X and Y are partners sharing profits in the ratio of 2:1. They admit Z into the partnership for \(\frac{1}{4}\)th share in profits for which he brings ₹20,000 as his share of capital. Hence, the adjusted capitals of X and Y will be:

What will be share of deceased partner, whose ratio was \(\frac{1}{4}\), if the turnover in year of death till the date of death was ₹8,00,000 and in previous year was ₹20,00,000? Profit in previous year was ₹ 4,00,000.