15 questions
Goodwill is _____
Tangible Asset
Intangible Asset
Fictitious Asset
Both Intangible and Fictitious Asset
Goodwill of the firm on the basis of 2 years' purchase of average profit of the last 3 years is Rs. 25,000. Find average profit.
Rs. 50,000
Rs. 25,000
Rs. 10,000
Rs. 12500
What are super profits
Actual profit – Normal Profit
Normal Profit - Actual profit
Actual profit + Normal Profit
None of the above
The net assets of the firm including fictitious assets of 5,000 are 85,000.The net liabilities of the firm are 30,000.The normal rate of return is 10% and the average profits of the firm are 8,000.Calculate the goodwill as per capitalization of super profits.
Rs.20,000
Rs. 30,000
Rs. 25,000
None of the above
Calculate the value of goodwill at 3 years' purchase of super profit when: Capital employed Rs. 2,50,000; Average profit Rs. 30,000 and normal rate of return is I0%
Rs. 3000
Rs. 25,000
Rs. 30,000
Rs. 15,000
Which of the following items are added to previous year’s profits for finding normal profits for valuation of goodwill.?
Loss on sale of fixed assets
Loss due to fire, earthquake etc
Undervaluation of closing stock
All of the above
The excess amount which the firm can get on selling its assets over and above the saleable value of its assets is called
Surplus
Super profits
Goodwill
Reserve
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:
Rs.72,000
Rs. 40,000
Rs. 2,40,000
Rs 1,80,000
If Super profit of a firm is 10,000,its value of goodwill will be ………….if rate of return is 8%
Rs 1,25,000
Rs 1,50,000
Rs 1,20,000
Rs 1,40,000
Capital employed in the business is ₹ 2,00,000,Normal rate of return(NRR) on capital employed is 15 % .During the year firm earned a profit of ₹ 48,000.Find the correct option if goodwill is 3 years purchase of super profit.
₹ 54,000
₹ 60,000
₹ 50,000
₹ 48,000
A firms earn ₹ 1,20,000 as its annual profits.The normal rate of profit being 10 % .Assets of the firm are ₹ 14,40,000 and liabilities are ₹ 4,40,000.Tick the correct option for goodwill by capitalisation method.
₹ 4,00,000
₹ 2,80,000
₹ 2,00,000
₹ 3,60,000
Average profit of firm is ₹ 3,00,000.total tangible assets in the firm are ₹ 28,00,000 and outside liabilities ₹ 8,00,000.The NRR is 10% of capital employed.calculate goodwill by capitalisation of super profit method.
₹ 14,00,000
₹ 16,00,000
₹ 18,00,000
₹ 10,00,000
If the NRR is 10% and Super profit is 20,000, calculate the goodwill as per capitalisation of super profits.
20,00,000
2,00,000
20,000
2,000
Goodwill may be defined as excess amount paid for a business over and above its
Tangible assets
Current assets
Total assets
Net worth
What will be the actual profit, when normal profit is ₹9,000, goodwill from super profit method is ₹24,000 and no. of years purchase is 6.
₹13,000
₹15,000
₹9,000
₹10,000