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When profits shows a growth trend we should use ............ Average Profits to calculate goodwill.
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Capital invested in a firm is 5,00,000.Normal rate of return is 10% .Average profit of the firm are 64,000(after an abnormal loss of 4,000).Value of goodwill at four times the super profits will be:
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The excess amount which the firm can get on selling its assets over and above the saleable value of its assets is called :
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Following are the methods of calculating goodwill except:
a)Super profit method b) Average profit method
c) Weighted Average profit method d) Capital profit method
......................
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When the value of goodwill of the firm is not given but has to be inferred on the basis of the net worth of the firm ,it is called……………..
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Goodwill is not valued during ………….
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Any change in the relationship of existing partners which results in an end of the existing agreement and enforces making of new· agreement is called:
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Reserves and accumulated profits are transferred to partners ' capital accounts at the time of reconstitution in:
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Increase and decrease in the value of assets and liabilities are recorded through:
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A and B are partners in a firm sharing profits in the ratio of 3 : 2. They decided to share future profits equally. Calculate A’s gain or sacrifice
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……..should compensate …………..in the case of reconstitution of the firm.
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Accounting standard................only Purchased goodwill should be recorded.
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Self Generated Goodwill can also be termed as ............. Goodwill
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It means the number of years for which the firm is likely to earn same amount of profits after change of ownership because of the efforts put in the past.
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Super profit is equal to Average Profit less..................