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12th Class Accountancy Fundamentals of Partnership Question Bank MCQs - Accounting for Partnership Firm : Fundamental

  • question_answer
    Total capital employed in the firm is Rs.8,00,000, reasonable rate of return is 15% and profit for the year is Rs.12,00,000. The value of goodwill of the firm as per capitalisation method would be:

    A) Rs.82,00,000       

    B) Rs.12,00,000

    C) Rs.72,00,000        

    D) Rs.42,00,000

    Correct Answer: C

    Solution :

    [c] Rs.72,00,000
    Hint : Capitalised Value of Profits
    =\[\frac{Average\,Profits}{Normal\,Rate\,of\,Return}\times 100\]
    =\[\frac{12,00,000}{15}\times 100\]  
    = Rs.80,00,000
    Goodwill = Capitalised Value of Profits - Actual Capital Employed
    = 80,00,000 - 8,00,000 = Rs.72,00,000
                                       


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