Arrange the steps of method, Capitalization of Average for the calculation of goodwill, in the correct sequence:
(A) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalized value of average profits as follows:
Average Profits × 100/Normal Rate of Return
(B) Ascertain the average profits based on the past few years' performance.
(C) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets).
Firms' Capital = Total Assets (excluding goodwill) – Outside Liabilities
Where outside Liabilities include both long term and short term Liabilities
(D) Compute the value of goodwill by deducting net assets from the capitalized value of average profits.
Choose the correct answer from the options given below:
Held on 30 May 2025 · Verified 13 Jul 2026.
(A), (B), (C), (D)
(A), (C), (B), (D)
(B), (A), (C), (D)
(C), (B), (D), (A)
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An unrecorded asset is taken over by a creditor in full settlement in such a case
The liability of partners is
As per AS-26 Intangible assets like goodwill should be written off.
Identify the correct statement from the given below :-
By virtue of which section of the Indian Partnership Act 1932, partnership is defined as 'the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all'.
Work through every CUET UG Partnership PYQ, year by year.