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

1)

Goodwill can be sold only when:

A)

New partner is admitted

B)

At the time of merger

C)

Business earning profits

D)

Entire business is sold or purchased

View Solution

2)

Goodwill is recorded in the books only when:

A)

Goodwill is self-generated

B)

Money or money's worth is paid for it

C)

A partner retires

D)

None of these

View Solution

3)

Total Assets (excluding goodwill) - outside liabilities will be:

A)

Average profits

B)

Net assets

C)

Super profit

D)

None of these

View Solution

4)

Self-generated Goodwill is calculated when:

A)

Amalgamation takes place

B)

At the time of change in profit sharing ratio among the existing partners

C)

At the time of Admission Retirement/death of a partner

D)

All of the above

View Solution

5)

The Goodwill of the firm is not affected by the:

A)

Better Customer Service

B)

After Sale Services

C)

Location of the firm

D)

Abnormal Gain (non recurring)

View Solution

6)

Weighted Average Method of calculating Goodwill is used when:

A)

Profits are almost same every year (including loss in one year only)

B)

Profits are not equal (increasing in one year and decreasing in other year)

C)

Profits are showing increasing trends/decreasing trends

D)

There are regular losses in the business

View Solution

7)

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

B)

50,000

C)

5,00,000

D)

2,00,000

View Solution

8)

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

B)

2,24,000

C)

1,68,000

D)

1,26,000

View Solution

9)

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

B)

1,70,000

C)

90,000

D)

85,000

View Solution

10)

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:

A)

40,800

B)

45,000

C)

47,000

D)

46,000

View Solution

11)

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

B)

1,91,000

C)

1,15,000

D)

1,99,000

View Solution

12)

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

B)

52,000

C)

70,000

D)

76,000

View Solution

13)

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

B)

1,20,000

C)

1,29,000

D)

1,23,000

View Solution

14)

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

B)

1,06,667

C)

1,10,000

D)

1,13,333

View Solution

15)

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

B)

1,93,333

C)

1,66,667

D)

1,80,000

View Solution

16)

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

B)

1,50,000

C)

1,63,333

D)

1,56,667

View Solution

17)

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

B)

78,000

C)

70,000

D)

80,000

View Solution

18)

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

B)

78,000

C)

71,000

D)

80,000

View Solution

19)

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

B)

70,200

C)

65,200

D)

69,200

View Solution

20)

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

B)

40,75,000

C)

49,25,000

D)

50,00,000

View Solution

21)

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

B)

80,000

C)

1,20,000

D)

1,50,000

View Solution

22)

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

B)

2 years

C)

2.5 years

D)

3.5 years

View Solution

23)

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

B)

55,000

C)

63,333

D)

70,000

View Solution

24)

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

B)

30,000 Loss

C)

30,000 Profit

D)

40,000 Profit

View Solution

25)

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;

31.3.2018..................................................................................................................1,67,000

31.3.2019......................................................................................................................1,56,000

31.3.2020.......................................................................................................1,92,000

31.3.2021.......................................................................................................................(10,000)

Value of Firm's goodwill:

A)

1,01,000

B)

1,00,000

C)

90,000

D)

1,10,000

View Solution

26)

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

B)

91,000

C)

92,000

D)

93,000

View Solution

27)

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

B)

38,000

C)

40,000

D)

42,000

View Solution

28)

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

B)

20,000

C)

30,000

D)

40,000

View Solution

29)

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

B)

12,00,000

C)

12,50,000

D)

12,70,000

View Solution

30)

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

B)

92,000

C)

94,000

D)

96,000

View Solution

31)

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

B)

68,000

C)

69,000

D)

71,000

View Solution

32)

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 2019-20	(d)	2,50,000

A)

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

B)

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

C)

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

D)

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

View Solution

33)

If average profit of a business is Rs.50,000 and normal profits are Rs.60,000, it shows:

A)

Positive Goodwill

B)

Positive super profit

C)

No Goodwill of business

D)

Goodwill is more than expected

View Solution

34)

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)

2,00,000

B)

15,00,000

C)

6,00,000

D)

3,00,000

View Solution

35)

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

B)

(3,00,000)

C)

Nil

D)

2,00,000

View Solution

36)

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

B)

1,00,000

C)

50,000

D)

20,000

View Solution

37)

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)

5,20,500

B)

5,40,000

C)

5,42,000

D)

5,42,500

View Solution

38)

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

B)

Actual Average Profit Rs.23,800

C)

Actual Average Profit Rs.21,800

D)

Actual Average Profit Rs.20,800

View Solution

39)

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

B)

42,000

C)

44,000

D)

46,000

View Solution

40)

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)

10,90,000

B)

10,80,000

C)

10,70,000

D)

10,60,000

View Solution

41)

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)

78,000

B)

93,000

C)

63,000

D)

49,000

View Solution

42)

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

B)

1,60,000

C)

1,70,000

D)

1,80,000

View Solution

43)

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%

B)

11%

C)

42%

D)

15%

View Solution

44)

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)	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

B)

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

C)

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

D)

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

View Solution

45)

Capitalisation method for goodwill is used:

A)

Always when calculating super profits

B)

When total assets are given

C)

When business is sold

D)

No. of years purchase is not given

View Solution

46)

Under the capitalization method, the formula for calculating the goodwill is:

A)

Super profits multiplied by the rate of return

B)

Average profits multiplied by the rate of return

C)

Super profits divided by the rate of return \[\times \] 100

D)

Average profits divided by the rate of return \[\times \] 100

View Solution

47)

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

B)

2,20,000

C)

2,50,000

D)

2,80,000

View Solution

48)

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

B)

5,00,000

C)

5,50,000

D)

6,00,000

View Solution

49)

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

B)

5,00,000

C)

5,40,000

D)

5,60,000

View Solution

50)

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

B)

12,00,000

C)

72,00,000

D)

42,00,000

View Solution

51)

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)

2,00,000

B)

10,000

C)

5,000

D)

1,00,000

View Solution

52)

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)

50,000

B)

10,000

C)

6,000

D)

56,000

View Solution

53)

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)

20,000

B)

22,500

C)

23,800

D)

24,000

View Solution

54)

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)

4,50,000

B)

5,00,000

C)

5,50,000

D)

6,00,000

View Solution

55)

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)

6,50,000

B)

3,00,000

C)

6,00,000

D)

4,00,000

View Solution

56)

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

B)

1,00,000

C)

6,00,000

D)

4,00,000

View Solution

57)

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)

13,00,000

B)

12,00,000

C)

16,00,000

D)

10,00,000

View Solution

58)

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

B)

9,00,000

C)

12,00,000

D)

10,00,000

View Solution

59)

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, 50,000

B)

1,20,000

C)

1,40,000

D)

1,30,000

View Solution

60)

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)

50,00,000

B)

30,00,000

C)

20,00,000

D)

70,00,000

View Solution

61)

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

B)

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

C)

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

D)

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

View Solution

62)

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

View Solution

63)

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

B)

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

C)

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

D)

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

View Solution

64)

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

B)

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

C)

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

D)

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

View Solution

65)

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