12th Class Accountancy Goodwill Question Bank MCQs - Goodwill : Nature And Valuation

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

B) (i)-b; (ii)-c; (iii)-d; (iv)-a

C) (i)-a; (ii)-d; (iii)-c; (iv)-b

D) (i)-a; (ii)-d; (iii)-b; (iv)-c

Correct Answer: B

Solution :

(i)-b; (ii)-c; (iii)-d; (iv)-a