(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
Correct Answer: A
Solution :
(i)-d; (ii)-a; (iii)-c, (iv)-bYou need to login to perform this action.
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