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