-
question_answer1)
Goodwill can be sold only when:
A)
New partner is admitted done
clear
B)
At the time of merger done
clear
C)
Business earning profits done
clear
D)
Entire business is sold or purchased done
clear
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question_answer2)
Goodwill is recorded in the books only when:
A)
Goodwill is self-generated done
clear
B)
Money or money's worth is paid for it done
clear
C)
A partner retires done
clear
D)
None of these done
clear
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question_answer3)
Total Assets (excluding goodwill) - outside liabilities will be:
A)
Average profits done
clear
B)
Net assets done
clear
C)
Super profit done
clear
D)
None of these done
clear
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question_answer4)
Self-generated Goodwill is calculated when:
A)
Amalgamation takes place done
clear
B)
At the time of change in profit sharing ratio among the existing partners done
clear
C)
At the time of Admission Retirement/death of a partner done
clear
D)
All of the above done
clear
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question_answer5)
The Goodwill of the firm is not affected by the:
A)
Better Customer Service done
clear
B)
After Sale Services done
clear
C)
Location of the firm done
clear
D)
Abnormal Gain (non recurring) done
clear
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question_answer6)
Weighted Average Method of calculating Goodwill is used when:
A)
Profits are almost same every year (including loss in one year only) done
clear
B)
Profits are not equal (increasing in one year and decreasing in other year) done
clear
C)
Profits are showing increasing trends/decreasing trends done
clear
D)
There are regular losses in the business done
clear
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question_answer7)
Total Asset 5,00,000; liabilities 2,00,000; and purchase consideration 3,50,000. Goodwill of the firm will be:
A)
3,00,000 done
clear
B)
50,000 done
clear
C)
5,00,000 done
clear
D)
2,00,000 done
clear
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question_answer8)
Goodwill of the firm is valued at 3 years purchase of simple average profit of last 4 years. Goodwill was calculated Rs. 1,68,000. Total profit of last four years were:
A)
56,000 done
clear
B)
2,24,000 done
clear
C)
1,68,000 done
clear
D)
1,26,000 done
clear
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question_answer9)
Profit of last 3 years were as follows : 2018-19 : 50,000 ; 2019-20 ; 80,000 ; 2020-21 : 1,00,000 Weighted average profit will be (if weight assigned 1,2,3):
A)
1,10,000 done
clear
B)
1,70,000Â done
clear
C)
90,000 done
clear
D)
85,000 done
clear
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question_answer10)
The net profits for the last 3 years were: 2018-19 Rs.40,000; 2019-20 Rs.46,000 and 2020-21 Rs.52,000. There was an abnormal loss of Rs.3,000 included in the profit of 2019-20.Adjusted average profit will be:Â
A)
40,800 done
clear
B)
45,000 done
clear
C)
47,000 done
clear
D)
46,000 done
clear
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question_answer11)
The net profits for the last 5 years were: 2016-17 Rs.1,36,000; 2017-18 Rs.1,70,000; 2018-19 Rs.1,90,000; 2019-20 Rs.2,00,000 and 2020-21 Rs.2,49,000. There was an abnormal loss of Rs.20,000 included in the profit of 2017-18 and an abnormal gain of 10,000 included in the profit of 2019-20. Adjusted average profit will be:
A)
1,89,000 done
clear
B)
1,91,000 done
clear
C)
1,15,000 done
clear
D)
1,99,000 done
clear
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question_answer12)
The net profits for the last 3 years were: 2018-19 Rs.70,000; 2019-20 Rs.60,000 and 2020-21 Rs.80,000. There was an abnormal loss of Rs.15,000 included in the year 2019-20. Profit of the year 2020-21 includes loss on sale of furniture (Furniture whose book value was 10,000 sold for 7,000). Adjusted average profit will be:
A)
67,333 done
clear
B)
52,000 done
clear
C)
70,000 done
clear
D)
76,000 done
clear
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question_answer13)
The net profits for the last 3 years were: 2018-19 Rs.1,10,000; 2019-20 Rs.1,20,000 and 2020-21 Rs.1,30,000-There was an abnormal gain of Rs.6,000 included in the profit of 2018-19 and profit of the year 2020-21 includes gain on sale furniture (furniture book value 10,000 was sold for 13,000). Adjusted average profit will be:
A)
1,17,000 done
clear
B)
1,20,000 done
clear
C)
1,29,000 done
clear
D)
1,23,000 done
clear
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question_answer14)
The net profits for the last 3 years were: 2018-19 Rs.80,000; 2019-20 Rs.1,20,000 and 2020-21 Rs.1,50,000. Included in the profit, there was an abnormal gain of Rs.20,000 and closing stock was overvalued at Rs.10,000 in 2019-20. Adjusted average profit will be:
A)
1,16,667 done
clear
B)
1,06,667Â done
clear
C)
1,10,000 done
clear
D)
1,13,333 done
clear
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question_answer15)
The net profits for the last 3 years were: 2018-19 Rs.1,80,000; 2019-20 Rs.1,50,000 and 2020-21 Rs.2,10,000. Included in the profit, there was an abnormal loss of Rs.40,000 and closing stock was overvalued by Rs.10,000 in 2019-20 but it is correctly brought forward in 2020-21. Adjusted average profit will be:
A)
1,90,000 done
clear
B)
1,93,333 done
clear
C)
1,66,667 done
clear
D)
1,80,000 done
clear
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question_answer16)
The net profits for the last 3 years were: 2018-19 Rs.1,50,000; 2019-20 Rs.1,50,000 and 2020-21 Rs.1,50,000. There was an abnormal loss of Rs.30,000 in 2019-20 and closing stock is to be undervalued at Rs.10,000 in 2018-19. Adjusted average profit will be:
A)
1,60,000 done
clear
B)
1,50,000 done
clear
C)
1,63,333 done
clear
D)
1,56,667 done
clear
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question_answer17)
The net profits for the last 3 years were: 2018-19 Rs.50,000; 2019-20 Rs.90,000 and 2020-21 Rs.70,000. On 1st April, 2020, furniture costing Rs.30,000 was purchased and wrongly debited as Travelling Expenses Account. Depreciation on furniture was to be charged @ 20% p.a. on straight line method. Adjusted average profit will
A)
62,000 done
clear
B)
78,000 done
clear
C)
70,000 done
clear
D)
80,000 done
clear
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question_answer18)
The net profits for the last 3 years were: 2018-19 Rs.82,000; 2019-20 Rs.66,400 and 2020-21 Rs.70,000. On 1st October 2019, furniture costing Rs.30,000 was purchased and wrongly debited as office Expenses Account. "Depreciation on furniture was to be charged @ 20% p.a. on written down value method. Adjusted average profit will be:
A)
66,000 done
clear
B)
78,000 done
clear
C)
71,000 done
clear
D)
80,000 done
clear
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question_answer19)
The net profits for the last 3 years were: 2018-19 Rs.70,000; 2019-20 Rs.52,000 and 2020-21 Rs.60,000. There was an abnormal loss of Rs.28,000 included in the profit of 2019-20. To cover management cost an annual charge of Rs.4,800 should be made for the purpose of goodwill valuation. Adjusted average profit will be:
A)
55,200 done
clear
B)
70,200 done
clear
C)
65,200Â done
clear
D)
69,200 done
clear
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question_answer20)
X and Y are partners. Following information is available on the admission of Z : Profit on 31.03.2019 = 10,00,000, Profit on 31.03.2020 = 15,00,000, Profit on 31.03.2021 = 20,00,000, On 30.09.2019 a major repair took place for Plant and Machinery amounting to Rs.5,00,000 which was by mistake treated as expense. Depreciation on Plant and Machinery is charged at the rate of 10% p.a. on Original cost. Adjusted total profits:
A)
45,00,000 done
clear
B)
40,75,000 done
clear
C)
49,25,000 done
clear
D)
50,00,000 done
clear
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question_answer21)
Vinod and Rishi are partners. They admit Kamlesh as a new partner for \[1/{{5}^{th}}\] share. For this purpose, The Goodwill of the firm to be calculated on the basis of 3 years purchase of last 5 years profits. The profits/loss for the last five years were:
Year |
2016-17 |
2017-18 |
2018-19 |
2019-20 |
2020-21 |
Profit |
50,000 |
40,000 |
75,000 |
(25,000) |
50,000 |
|
Profit |
Profit |
Profit |
loss |
Profit |
The Profit of 2017-18 was calculated after charging Rs. 10,000 for abnormal loss of goods by fire. The Goodwill of the firm will be:
A)
40,000 done
clear
B)
80,000 done
clear
C)
1,20,000 done
clear
D)
1,50,000 done
clear
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question_answer22)
Vinod and Divij are partners. They admit Kanav as new partner. Goodwill of the firm is to be calculated. The profits/loss for last 5 years to be considered are:
Year | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
Profit | 40,000 | 80,000 | 95,000 | 35,000 | 20,000 |
| Profit | Profit | Profit | loss | Profit |
The Goodwill of the firm was calculated Rs.1,00,000. Find out the 'Number of years Purchase':
A)
3 years done
clear
B)
2 years done
clear
C)
2.5 years done
clear
D)
3.5 years done
clear
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question_answer23)
At the time of Change in partnership agreement due to admission of a new partner, the Goodwill of the firm was to be valued at two years purchase of the average profit of the last three years. The profits were as under: |
2018-19 : Rs.40,000 (Excluding an abnormal gain of Rs.10,000) |
2019-20 : Rs.40,000 (after charging an abnormal loss of Rs.10,000) |
2020-21: Rs.20,000 (including an abnormal gain of Rs.5,000) |
The Goodwill of the firm will be : |
A)
76,667 done
clear
B)
55,000 done
clear
C)
63,333Â done
clear
D)
70,000 done
clear
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question_answer24)
VK and GN are partners. They admit KK as new partner and goodwill of the firm was to be calculated at two years purchase of the average profits of last 4 years. The profits/loss of last 5 years were as follows (to be used last four years only) :
Year | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
Profit | 10,000 | 70,000 | 90,000 | ? | 50,000 |
| Profit | Profit | Profit | Profit |
Goodwill of the firm was Rs.90,000. Profit/loss for the year 2019-20 was:
A)
40,000 Loss done
clear
B)
30,000 Loss done
clear
C)
30,000 Profit done
clear
D)
40,000 Profit done
clear
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question_answer25)
X and Y are partners. On 1st April, 2021 they decided to admit Z into partnership. For this purpose, goodwill was valued at 80% of the average annual profits of the previous four years. The profits of the last four years were; |
31.3.2018Â…..................................................................................................................1,67,000 |
31.3.2019......................................................................................................................1,56,000 |
31.3.2020Â…Â…Â…Â….......................................................................................................1,92,000 |
31.3.2021.......................................................................................................................(10,000) |
Value of Firm's goodwill: |
A)
1,01,000 done
clear
B)
1,00,000 done
clear
C)
90,000Â done
clear
D)
1,10,000 done
clear
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question_answer26)
At the time of reconstitution of a partnership firm, Goodwill was valued on the basis of three years purchase of the weighted average profits of the last four years. The profits and losses of the preceding four years were:
Particulars | Profit | Weights |
2017-18 | 22,000 | 1 |
2018-19 | 27,000 | 2 |
2019-20 | 32,000 | 3 |
2020-21 | 35,000 | 4 |
While valuing Goodwill of the firm, it was found that the closing stock of the year 2019-20 was undervalued by Rs.2,000.Goodwill of the firm will be:
A)
90,000 done
clear
B)
91,000 done
clear
C)
92,000 done
clear
D)
93,000 done
clear
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question_answer27)
Find out the profit for the year 2016-17 from the following information:
Year | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
Profit/Loss | ? | 50,000 | 30,000 | Loss 20,000 | 50,000. |
Firm had calculated goodwill due to change in profit sharing ratio among the partners at 2.5 years purchase of average profit of last five years. Goodwill was valued at Rs.75,000. Profit for the year 2016-17 was:
A)
35,000 done
clear
B)
38,000 done
clear
C)
40,000 done
clear
D)
42,000 done
clear
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question_answer28)
Find out the loss for the year 2019-20 from the following information:
Year | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
Profit/Loss | 60,000 | 80,000 | 50,000 | Loss ? | 70,000 |
Firm is selling its entire business, so goodwill estimated at 3 years purchase of the average profits of last 5 years. The goodwill is valued at Rs.1,50,000. Loss for the year 2019-20 was :
A)
10,000 done
clear
B)
20,000 done
clear
C)
30,000 done
clear
D)
40,000 done
clear
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question_answer29)
The goodwill of a firm is valued at 4 years' purchase of average profits of last five years. The profits of the last five years were : 2013 - 14 : 2,00,000, 2014 - 15 : 3,00,000, 2015 - 16 : 4,50,000 (including an abnormal gain of Rs.50,000) 2016 - 17 : 3,50,000 (after charging an abnormal loss of Rs.90,000) 2017 - 18 : 2,60,00. Goodwill of the firm will be:
A)
12,80,000 done
clear
B)
12,00,000 done
clear
C)
12,50,000 done
clear
D)
12,70,000 done
clear
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question_answer30)
The total capital of the firm of Saurabh, Mohit and Nikhil was Rs.1,00,000. The net profits for the last 3 years were : 2018-19 Rs.40,000; 2019-20 Rs.46,000 and 2020-21 Rs.52,000. There was an abnormal loss of Rs.3,000 in 2019-20. Goodwill of the firm was to be valued at 2 years purchase of the average profits of last three years. The goodwill of the firm will be:
A)
90,000 done
clear
B)
92,000 done
clear
C)
94,000 done
clear
D)
96,000 done
clear
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question_answer31)
The net profits for the last 3 years were: 2018-19 Rs.82,000; 2019-20 Rs.62,200 and 2020-21 Rs.70,000. On 1st October 2019, a Minor Repair to Machinery amounting to Rs.10,000 was wrongly debited to Machinery Account. Depreciation on Machinery was charged @ 20% p.a. on written down value method including repairs. Simple average profit will be:
A)
73,000 done
clear
B)
68,000 done
clear
C)
69,000 done
clear
D)
71,000 done
clear
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question_answer32)
Match the followings with the given information : The profit of last 4 years were 2017-18 Rs.1,00,000; 2018-19 Rs.2,00,000; 2019-20 Rs.3,00,000; 2020-21 Rs.4,00,000. Average Adjusted profit will be:
(i) | Overvaluation of closing stock in 2018-19 is Rs.10,000 | (a) | 2,52,500 |
(ii) | Undervaluation of closing stock in 2018-19 is Rs.10,000 but in 2019-20 it is correctly recorded | (b) | 2,48,750 |
(iii) | Abnormal gain included in 2019-20 is Rs.10,000 | (c) | 2,47,500 |
(iv) | Sale of furniture (book value 10,000) 15,000 in the year 2019-20Â Â Â Â Â Â Â Â Â Â | (d) | 2,50,000 |
A)
(i)-b; (ii)-c; (iii)-a; (iv)-d done
clear
B)
(i)-b; (ii)-c; (iii)-d; (iv)-a done
clear
C)
(i)-d; (ii)-a; (iii)-c; (iv)-b done
clear
D)
(i)-a; (ii)-d; (iii)-b; (iv)-c done
clear
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question_answer33)
If average profit of a business is Rs.50,000 and normal profits are Rs.60,000, it shows:
A)
Positive Goodwill done
clear
B)
Positive super profit done
clear
C)
No Goodwill of business done
clear
D)
Goodwill is more than expected done
clear
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question_answer34)
X and Y are partners. Following information is available on the admission of a new partner Z. Average Profit = 5,00,000; Normal profit = 3,00,000; Number of years purchased = 3 years. Goodwill of the firm (by Super profit method) will be:
A)
2,00,000Â done
clear
B)
15,00,000 done
clear
C)
6,00,000 done
clear
D)
3,00,000 done
clear
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question_answer35)
X and Y are partners. Following information is available on the admission of a new partner Z. Average profit = 5,00,000; Normal profit = 6,00,000; Number of year purchased = 3 years. Goodwill of the firm (Super profit) will be:
A)
3,00,000 done
clear
B)
(3,00,000) done
clear
C)
Nil done
clear
D)
2,00,000 done
clear
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question_answer36)
Tangible Assets of the firm are Rs.14,00,000 and outside liabilities are Rs.4,00,000. Profit of the firm is Rs.1,50,000 and normal rate of return is 10%. The amount of Capital Employed will be:
A)
10,00,000 done
clear
B)
1,00,000 done
clear
C)
50,000 done
clear
D)
20,000 done
clear
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question_answer37)
Average Profit earned by a firm is Rs.1,00,000 which includes undervaluation of stock of Rs.40,000 on an average basis. The capital invested in the business is Rs.6,30,000 and the normal rate of return is 5%. Goodwill of the firm on the basis of 5 times of super profit will be:
A)
5,20,500Â Â Â done
clear
B)
5,40,000 done
clear
C)
5,42,000 done
clear
D)
5,42,500 done
clear
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question_answer38)
On April 1, 2018, a firm had assets of Rs.1,00,000 excluding stock of Rs.20,000. The current liabilities were Rs.10,000 and the balance constituted Partners' Capital Accounts. If the normal rate of return is 8%, the Goodwill of the firm is valued at Rs.60,000 at four years purchase of super profit. Find the actual Average profits of the firm:
A)
Actual Average Profit Rs.22,800 done
clear
B)
Actual Average Profit Rs.23,800 done
clear
C)
Actual Average Profit Rs.21,800 done
clear
D)
Actual Average Profit Rs.20,800 done
clear
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question_answer39)
Total Capital of the partners X, Y and Z is Rs.1,00,000 and the market rate of interest is 15%. The net profit for the last 3 years were Rs.30,000; Rs.36,000 and Rs.42,000. Goodwill is to be valued at 2 years purchase of the last 3 years profit. Goodwill of the firm will be:
A)
40,000 done
clear
B)
42,000 done
clear
C)
44,000 done
clear
D)
46,000 done
clear
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question_answer40)
A business earned average profits of Rs.6,00,000 during the last few years. The normal rate of profits in the similar type of business is 10%. The total value of assets and liabilities of the business were Rs.22,00,000 and Rs.5,60,000 respectively. Calculate the value of goodwill of the firm by super profit method if the goodwill is valued at 2.5 years purchase of super profits. Goodwill of the firm will be:
A)
10,90,000Â done
clear
B)
10,80,000Â done
clear
C)
10,70,000 done
clear
D)
10,60,000 done
clear
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question_answer41)
The average profit earned by a firm is Rs.75,000 which includes undervaluation of stock of Rs.5,000 on an average basis. The capital invested in the business is Rs.7,00,000 and the normal rate of return is 7%. Goodwill the firm on the basis of 3 times the super profit will be:
A)
78,000Â done
clear
B)
93,000 done
clear
C)
63,000 done
clear
D)
49,000 done
clear
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question_answer42)
The capital of the firm of X and Y is Rs.10,00,000 and the market rate of interest is 15%. Annual Salary to the partners is Rs. 60,000 each. The profit for the last three years were Rs. 3,00,000; Rs. 3,60,000 and Rs. 4,20,000. Goodwill of the firm is to be calculated on the basis of two years purchase of last three years average super profits. Goodwill of the firm will be:
A)
1,50,000 done
clear
B)
1,60,000 done
clear
C)
1,70,000 done
clear
D)
1,80,000 done
clear
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question_answer43)
X and Y are partners. They have calculated goodwill of the firm on the admission of a new partner Z. Goodwill calculated by using Super Profit method = 4,60,000; Average Profit = 3,50,000; Capital employed = 10,00,000; Number of years purchased = 2 years. Normal rate of return was:
A)
10% done
clear
B)
11% done
clear
C)
42% done
clear
D)
15% done
clear
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question_answer44)
Match the followings : The profit of last 4 years were 2017-18 Rs.1,00,000; 2018-19 Rs.2,00,000; 2019-20; Rs.3,00,000; 2020-21 Rs.4,00,000. Capital employed 15,00,000; Normal rate of return 10%; Number of years purchased 2 years.
(i)Â | Normal Profit | (a) | 2,50,000 |
(ii) | Average Profit | (b) | 1,00,000 |
(iii) | Super profit | (c) | 1,50,000 |
(iv) | Goodwill (super profit) | (d) | 2,00,000 |
A)
(i)-c; (ii)-b; (iii)-a; (iv)-d done
clear
B)
(i)-b; (ii)-c; (iii)-d; (iv)-a done
clear
C)
(i)-d; (ii)-a; (iii)-c; (iv)-b done
clear
D)
(i)-c; (ii)-a; (iii)-b; (iv)-d done
clear
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question_answer45)
Capitalisation method for goodwill is used:
A)
Always when calculating super profits done
clear
B)
When total assets are given done
clear
C)
When business is sold done
clear
D)
No. of years purchase is not given done
clear
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question_answer46)
Under the capitalization method, the formula for calculating the goodwill is:
A)
Super profits multiplied by the rate of return done
clear
B)
Average profits multiplied by the rate of return done
clear
C)
Super profits divided by the rate of return \[\times \] 100 done
clear
D)
Average profits divided by the rate of return \[\times \] 100 done
clear
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question_answer47)
A and B were partners in a firm with capitals of Rs.3,00,000 and Rs. 2,00,000 respectively. The normal rate of return was 20% and the capitalised value of average profits was Rs.7,50,000. Goodwill of the firm by capitalisation of average profits method will be;
A)
2,00,000 done
clear
B)
2,20,000 done
clear
C)
2,50,000 done
clear
D)
2,80,000 done
clear
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question_answer48)
Average profit of a firm during the last few years is Rs.1,50,000. In similar business, the normal rate of return is 10% of the capital employed. Calculate the value of goodwill by capitalisation of super profit method if super profits of the firm are Rs.50,000. Goodwill of the firm will be:
A)
4,50,000 done
clear
B)
5,00,000 done
clear
C)
5,50,000 done
clear
D)
6,00,000 done
clear
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question_answer49)
A firm earned average profit of Rs.3,00,000 during the last few years. The normal rate of return in the industry is 15%. The assets of the firm were Rs.17,00,000 and its liabilities were Rs.2,00,000. Goodwill of the firm by capitalization of average profit will be:
A)
5,20,000 done
clear
B)
5,00,000 done
clear
C)
5,40,000 done
clear
D)
5,60,000 done
clear
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question_answer50)
Total capital employed in the firm is Rs.8,00,000, reasonable rate of return is 15% and profit for the years Rs.12,00,000. The value of goodwill of the firm as per capitalization method would be:
A)
82,00,000 done
clear
B)
12,00,000 done
clear
C)
72,00,000 done
clear
D)
42,00,000 done
clear
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question_answer51)
A firm earns Rs.1,10,000. The normal rate of return is 10%. The assets of the firm amounted to Rs.11,00,000 and liabilities to Rs.1,00,000. Value of Goodwill by capitalization of Average Actual Profits will be:
A)
2,00,000Â done
clear
B)
10,000Â done
clear
C)
5,000 done
clear
D)
1,00,000 done
clear
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question_answer52)
Capital employed by a partnership firm is Rs.5,00,000. Its average profit is Rs.60,000. The normal rate of return in similar type of business is 10%. What is the amount of Super Profit?
A)
50,000Â done
clear
B)
10,000 done
clear
C)
6,000 done
clear
D)
56,000 done
clear
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question_answer53)
On 1st April 2021, a firm had assets of Rs.1,00,000 excluding stock of Rs.20,000. Partners capital accounts showed a balance of Rs.60,000. The current liabilities were Rs.10,000 and the balance constituted the reserve. If the normal rate of return is 8%, the Goodwill of the firm is valued at Rs.60,000 at four years of purchase of super profit. Find out the average profit:
A)
20,000Â done
clear
B)
22,500 done
clear
C)
23,800 done
clear
D)
24,000 done
clear
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question_answer54)
Average profits of a firm during the last few years are Rs.80,000 and the normal rate of return in a similar business is 10%. If the goodwill of the firm is Rs.1,00,000 at 4 years purchase of super profit, find the capital employed by the firm.
A)
4,50,000Â done
clear
B)
5,00,000 done
clear
C)
5,50,000 done
clear
D)
6,00,000 done
clear
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question_answer55)
X and Y are partners. They have provided following information on the admission of a new partner Z. Total asset = 10,00,000 (Including goodwill 50,000); Outside liabilities = 3,50,000. Capital employed of the firm:
A)
6,50,000Â done
clear
B)
3,00,000 done
clear
C)
6,00,000 done
clear
D)
4,00,000 done
clear
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question_answer56)
X and Y are partners. They have provided following information on the admission of a new partner Z. Total asset = 10,00,000 (excluding goodwill 50,000); Outside liabilities = 3,50,000. Capital employed of the firm will be;
A)
6,50,000 done
clear
B)
1,00,000Â done
clear
C)
6,00,000 done
clear
D)
4,00,000 done
clear
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question_answer57)
X and Y are partners. They have provided following information on the admission of a new partner Z. Share capital = 10,00,000 ; Reserves & surplus = 3,00,000; Outside liabilities = 3,00,000; Total asset = 16.00,000 (Including Miscellaneous expenditure of Rs.1,00,000). Capital employed of the firm is :
A)
13,00,000Â done
clear
B)
12,00,000 done
clear
C)
16,00,000 done
clear
D)
10,00,000 done
clear
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question_answer58)
X and Y are partners. They have provided following information on the admission of a new partner Z. Total assets = 16,00,000 and Outside liabilities = 5,00,000; Total assets include : Goodwill (Given in balance sheet) = 50,000; Miscellaneous expenditure = 10,000; Preliminary expense = 40,000; Trade investment = 1 00,000. Capital Employed of the firm will be:
A)
11,00,000 done
clear
B)
9,00,000Â done
clear
C)
12,00,000 done
clear
D)
10,00,000 done
clear
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question_answer59)
X and Y are partners. They have provided following information on the admission of a new partner Z. |
Balance of capital account : Partner A = 50,000 and Partner B = 30,000 |
Current account balance of partners : Partner A = 20,000 and Partner B = 10,000 |
Reserves & Surplus = 40,000 |
Goodwill (Given in Balance sheet) = 10,000 and Advertisement expense = 20,000 |
Capital employed of the firm: |
A)
1, 50,000Â done
clear
B)
1,20,000 done
clear
C)
1,40,000 done
clear
D)
1,30,000 done
clear
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question_answer60)
X and Y are partners. They have provided following information on the admission of a new partner Z. Average Profit = 5,00,000; Normal rate of return = 10%; Net asset (or capital employed) = 30,00,000. Goodwill of the firm (by using Capitalisation of average Profit) will be:
A)
50,00,000Â done
clear
B)
30,00,000 done
clear
C)
20,00,000 done
clear
D)
70,00,000 done
clear
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question_answer61)
Match the followings
 (i) | Goodwill (By using Average Profit method) | (a) | Super profit \[\times \] Number of years |
(ii) | Goodwill (By using Super profit method) | (b) | \[\frac{Super\,\,Profit}{Normal\text{ }Rate\text{ }of\text{ }Return}\times 100\] |
(iii) | Goodwill (Capitalisation of average profit) | (c) | \[\left( \frac{Average\text{ }Profit}{Normal\text{ }Rate\text{ }of\text{ }Return}\times 100 \right)-Net\,\,Assets\] |
(iv) | Goodwill (Capitalisation of super profit) | (d) | Average profit \[\times \] Number of years |
A)
(i)-d; (ii)-a; (iii)-c, (iv)-b done
clear
B)
(i)-d, (ii)-a; (iii)-b; (iv)-c done
clear
C)
(i)-a; (ii)-d; (iii)-c, (iv)-b done
clear
D)
(i)-a; (ii)-d; (iii)-b; (iv)-c done
clear
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question_answer62)
Match the followings from the given information : Average Profit = 2,00,000; Capital employed = 15,00,000; Normal rate of return = 10%; Number of years purchased = 3 years
(i) | Goodwill (By using Average Profit method) | (a) | 50,000 |
(ii) | Goodwill (By using Super profit method) | (b) | 6,00,000 |
(iii) | Goodwill (Capitalisation of average profit) | (c) | 1,50,000. |
(iv) | Amount of Super profit | (d) | 5,00,000 |
A)
(i)-b; (ii)-c; (iii)-a (iv)-d done
clear
B)
(i)-b; (ii)-c; (iii)-d; (iv)-a done
clear
C)
(i)-a; (ii)-d; (iii)-c; (iv)-b done
clear
D)
(i)-a; (ii)-d; (iii)-b; (iv)-c done
clear
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question_answer63)
Match the followings
(i) | A's capital = 2,00,000; B's capital 3,00,000; Goodwill 50,000 (given in Balance sheet). Capital employed will be | (a) | 5,00,000 |
(ii) | Total assets = 10,00,000; Total assets includes miscellaneous expenditure 1,00,000; Outside liabilities = 4,00,000. Capital employed will be | (b) | 5,50,000 |
(iii) | Normal profit = 48,000; Normal rate of return = 8% p.a. Capital employed will be: | (c) | 4,50,000 |
(iv) | A's capital = 2,50,000; B's capital 3,00,000; Trade investment = 50,000. Capital employed will be: | (d) | 6,00,000 |
A)
(i)-c; (ii)-a; (iii)-d; (iv)-b done
clear
B)
(i)-b; (ii)-c; (iii)-d; (iv)-a done
clear
C)
(i)-d; (ii)-a; (iii)-c; (iv)-b done
clear
D)
(i)-c, (ii)-a, (iii)-b; (iv)-d done
clear
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question_answer64)
Match the followings : The profit of last 4 years were 2017-18 Rs.50,000; 2018-19 Rs.60,000; 2019-20 Rs.70,000; 2020-21 Rs.80,000.
(i) | A minor repair of 20,000 of Machinery on 01.10.2019 was treated as an Asset by mistake (machinery). Average profit will be: | (a) | 60750 |
(ii) | A minor repair of 20,000 of Machinery on 01.10.2019 was treated as an Asset by mistake (machinery). Depreciation on Machinery was 10% per annum by using straight line method. Average profit will be: | (b) | 60,950 |
(iii) | A minor repair of 20,000 of Machinery on 01.10.2019 was treated as an Asset by mistake (machinery). Depreciation on machinery is 10% per annum on written down value method. Average profit will be: | (c) | 60,000 |
(iv) | A minor repair of 20,000 of Machinery on 01.Apr.2019 was treated as an Asset by mistake (machinery). Depreciation on machinery is 10% per annum on written down value method. Average profit will be: | (d) | 60,725 |
A)
(i)-c; (ii)-a; (iii)-d; (iv)-b done
clear
B)
(i)-b; (ii)-c; (iii)-d; (iv)-a done
clear
C)
(i)-d; (ii)-a; (iii)-c; (iv)-b done
clear
D)
(i)-c; (ii)-a; (iii)-b; (iv)-d done
clear
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question_answer65)
Match the followings : The profit of last 4 years were 2017-18 Rs.2,50,000; 2018-19 Rs.2,80,000; 2019-20 Rs.2,70,000; 2020-21 Rs.3,00,000.
(i) | A major repair for office building was done for Rs.80,000 on 01.10.2019 was debited as office expense account. Average profit will be: | (a) | 2,92,000 |
(ii) | A major repair for office building was done for Rs.80,000 on 01.10.2019 was debited as office expense account. Depreciation on building is 10% p.a. on original cost. Average profit will be: | (b) | 2,91,200 |
(iii) | A major repair for office building was done for Rs.80,000 on 01.10.2019 was debited as office expense account. Depreciation on building is 10% p.a. on Written Down Value. Average profit will be: | (c) | 2,92,100 |
(iv) | A major repair for office building was done for Rs.80,000 on 01.04.2019 was debited as office expense account. Depreciation on building is 10% p.a. on Written down value. Average profit will be: | (d) | 2,95,000 |
A)
(i)-c; (ii)-a; (iii)-d; (iv)-b done
clear
B)
(i)-b; (ii)-c; (iii)-d; (iv)-a done
clear
C)
(i)-d; (ii)-a; (iv)-c; (iv)-b done
clear
D)
(i)-c; (ii)-a; (iii)-b; (iv)-d done
clear
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question_answer66)
Goodwill is intangible asset but not a fictitious asset.
A)
True done
clear
B)
False done
clear
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question_answer67)
Purchased Goodwill is shown in the Balance Sheet of the firm but Self-Generated Goodwill is not recorded in the books.
A)
True done
clear
B)
False done
clear
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question_answer68)
Super profit is the excess of Average profit over normal profit.
A)
True done
clear
B)
False done
clear
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question_answer69)
While calculating capital employed, total assets do not include Trade investment.
A)
True done
clear
B)
False done
clear
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question_answer70)
Capital employed = Share capital + Reserves & surplus + Profit & Loss (Dr.) – Goodwill (given in Balance sheet) – other fictitious assets.
A)
True done
clear
B)
False done
clear
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