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

  • question_answer
    Average profit of a business over the last five years was Rs.60,000. The normal yield on capital invested in such a business is estimated at 10% p.a. The net capital invested in the business is Rs.5,00,000. Amount of goodwill, if it is based on 3 years’ purchase of last 5 years super profits will be:

    A) Rs.1,00,000                  

    B) Rs.1,80,000

    C) Rs.30,000                     

    D) Rs.1,50,000

    Correct Answer: C

    Solution :

    [c] Rs.30,000
    Hint: Normal Profit = 5,00,000 \[\times \] 10% = Rs.50,000
    Super Profit = 60,000 - 50,000 = Rs.10,000
    Goodwill = 10,000 \[\times \] 3 = Rs.30,000
     


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