2025

1. Arun, Bashir, and Joseph were partners in a firm sharing profits and losses in the
ratio of 5:3:2. They admitted Daksh as a new partner who acquired his share entirely
from Arun. If Arun sacrificed 1/5 of his share to Daksh, calculate Daksh’s share in
the profits of the firm.
2. X and Y are partners in a firm. X draws ₹5,000 at the end of each month, and Y draws
₹10,000 at the beginning of each quarter. Calculate interest on drawings @6% p.a.
for both partners.
3. A firm has average profits of ₹1,50,000. The capital employed is ₹10,00,000, and the
normal rate of return is 12%. Calculate goodwill based on three years’ purchase of
super profits.
4. Ravi and Mohan are partners sharing profits equally. Ravi withdrew ₹4,000 at the
beginning of each month during the year, and Mohan withdrew ₹6,000 at the end of
each month during the year. Calculate interest on drawings @10% p.a. for the year.

2024

5. Atul, Beena, and Sita were partners in a firm sharing profits and losses in the ratio of
8:7:5. Damini was admitted as a new partner for 1/5th share in the profits, which she
acquired entirely from Atul. Calculate the new profit-sharing ratio of the partners.

6. Varun, Tarun, Arun, and Barun were partners sharing profits in the ratio of 5:3:2:2. Arun
retired on 31st March 2023. The remaining partners decided to share future profits equally.
On Arun’s retirement, goodwill of the firm was valued at ₹9,00,000. Show your workings
clearly and pass the necessary journal entry for the treatment of goodwill on Arun’s
retirement without opening the goodwill account.

7. A and B are partners sharing profits in the ratio of 2:3. They decide to admit C, who brings
₹50,000 for 1/4th share of the future profits. Goodwill is valued at ₹40,000. Pass necessary
journal entries.

8. Calculate the sacrificing ratio when X and Y admit Z, who brings ₹50,000 as goodwill for
a 1/4th share of profits.
2023

9. Aditi, Bobby, and Krish were partners sharing profits and losses in the ratio of 5:3:2. Their
capitals were ₹5,00,000, ₹4,00,000, and ₹2,00,000 respectively. The partnership deed
provided for:

• Interest on capital @10% per annum.

• Interest on drawings @6% per annum.

• Interest on partner’s loan to the firm @9% per annum.

During the year, Aditi had withdrawn ₹60,000 and Bobby ₹50,000. On 1st September 2021,
Krish had given a loan of ₹40,000 to the firm. Pass necessary journal entries in the books of
the firm for these transactions and prepare the necessary accounts.

10. Ravi and Sumit are partners in a firm. Ravi draws ₹5,000 at the end of each month, and
Sumit draws ₹10,000 at the beginning of each quarter. Calculate interest on drawings @6%
per annum for both partners.

11. A and B are partners sharing profits and losses in the ratio of 3:2. They admit C as a new
partner for 1/5th share in the profits, which C acquires equally from A and B. The goodwill
of the firm is valued at ₹1,00,000. Calculate the new profit-sharing ratio of the partners and
pass the necessary journal entry for goodwill adjustment if C brings his share of goodwill in
cash.

12. Calculate interest on capital for the following:

• A: Capital ₹2,00,000; Interest @8% p.a.

• B: Capital ₹1,50,000; Interest @8% p.a.

2022

13. Aayush and Aarushi are partners sharing profits and losses in the ratio of 3:2. They
admitted Naveen into partnership for 1/4th share. Goodwill of the firm was to be valued at
three years’ purchase of super profits. Average net profit of the firm was ₹20,000. Capital
investment in the business was ₹50,000, and the normal rate of return was 10%. Calculate
the amount of goodwill premium brought by Naveen.

14. Asha, Disha, and Raghav were partners sharing profits in the ratio of 2:3:1. According to
the partnership agreement, Raghav was guaranteed an amount of ₹40,000 as his share of
profits. The net profit for the year ended 31st March 2022 amounted to ₹1,20,000. Prepare
the Profit and Loss Appropriation Account of the firm for the year.

15. M, N, and O are partners in a firm sharing profits in the ratio of 3:3:2. They decided to
change their profit-sharing ratio to 4:3:3. The goodwill of the firm was valued at ₹1,20,000.
Pass journal entries to adjust goodwill in the new profit-sharing ratio.

16. The net profit of a partnership firm is ₹90,000. Interest on capital is ₹12,000, and
interest on drawings is ₹3,000. Partners also receive salaries of ₹20,000. Distribute the
profit among the partners in their agreed ratio of 2:2:1.

2021

17. A, B, and C are partners sharing profits equally. On 1st January 2020, C retired.
Goodwill of the firm was valued at ₹60,000, and the remaining partners decided to share
profits in the ratio of 3:2. Pass the journal entry for goodwill adjustment.

18. X, Y, and Z are partners sharing profits in the ratio of 4:3:2. Z retires, and goodwill of the
firm is valued at ₹1,20,000. X and Y decide to share future profits in the ratio of 3:2. Pass
the journal entry for goodwill adjustment.

19. A firm earns an average profit of ₹1,80,000 per year. The normal rate of return is 12%,
and the total capital employed is ₹15,00,000. Calculate goodwill based on super profits for
three years’ purchase.

20. B, C, and D are partners sharing profits in the ratio of 5:3:2. On B’s retirement, goodwill
is valued at ₹3,60,000. C and D decide to share future profits in the ratio of 3:2. Pass the
journal entry for the adjustment of goodwill.

2020
21. P and Q are partners with capitals of ₹1,00,000 and ₹2,00,000, respectively. Interest on
capital is allowed @5% p.a. The net profit for the year is ₹15,000. Prepare the Profit and
Loss Appropriation Account and calculate the partners’ shares of profit.

22. The profits of a firm for the last four years are ₹1,00,000, ₹1,20,000, ₹1,50,000, and
₹1,30,000. Calculate goodwill based on 3 years’ purchase of average profits.

23. Calculate interest on drawings for the following cases:

• A withdrew ₹5,000 at the end of every quarter.

• B withdrew ₹10,000 at the beginning of each half-year.

Interest is to be charged @8% p.a.

24. A firm’s profits for the past three years were ₹1,20,000, ₹1,30,000, and ₹1,40,000,
respectively. The goodwill is to be valued based on four years’ purchase of the average
profit. Calculate the goodwill of the firm.

2019

25. A, B, and C are partners sharing profits in the ratio of 3:2:1. Their fixed capitals are
₹3,00,000, ₹2,00,000, and ₹1,00,000, respectively. Interest on capital is provided @6% p.a.
The profit for the year is ₹1,80,000. Prepare the Profit and Loss Appropriation Account.

26. X and Y are partners with capitals of ₹2,50,000 and ₹1,50,000, respectively. They
decide to admit Z for 1/4th share in the profits. Z brings ₹2,00,000 as capital and ₹50,000
as goodwill. Pass the necessary journal entries.

27. The net profit of a partnership firm is ₹1,50,000. Interest on capital is ₹30,000, and the
partners receive salaries totaling ₹40,000. The remaining profit is to be shared equally
between the two partners. Calculate each partner’s share.

28. A firm earns an average profit of ₹2,40,000 per year. If the normal rate of return is 12%,
calculate goodwill based on two years’ purchase of super profits.

2018
29. Partners A and B have capitals of ₹2,00,000 and ₹3,00,000 respectively. Interest on
capital is @10% p.a. The profit for the year is ₹1,20,000. Calculate the share of profit for
each partner after interest on capital.

30. On revaluation of assets and liabilities, assets increased by ₹25,000, and liabilities
decreased by ₹10,000. Pass journal entries for revaluation in the books of the firm where
partners A, B, and C share profits in the ratio 3:2:1.

31. Partner X withdrew ₹2,000 in January, ₹3,000 in April, ₹4,000 in July, and ₹1,000 in
October. Calculate interest on drawings @6% p.a.

32. A firm’s profits for the past three years were ₹80,000, ₹90,000, and ₹1,00,000. Goodwill
is to be calculated based on three years’ purchase of the average profit. Calculate the
goodwill.