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Ans – a) Explanation:- Value of Goodwill = Average profit of the last 5 years * 3 years purchase Value of Goodwill = 1,50,000 * 3 Value of Goodwill = ₹ 4,50,000

Ans – b) Explanation:- Normal Profit = 5,00,000 * 10% = ₹ 50,000 Super Profit  = Average Profit – Normal Profit Super Profit = ₹ 60,000 – ₹ 50,000 Supre Profit = ₹ 10,000

Ans – a) Explanation:- The ‘number of years purchase’ in the calculation of goodwill are the expected years that the profit due to goodwill is likely to arise in the future. For example, there is 2 years purchase. It means…

Ans – d) Explanation:- The difference between the market value and realized value at the time of sale of business assets is goodwill.

Ans – d) Explanation:- Goodwill is an intangible asset as it can not be touched physically.

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