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Category MCQs (Goodwill)

MCQs (Goodwill) 30 Questions

0 Votes 1 Ans

Total of Assets side of the Balance Sheet – ₹ 25,00,000, Debit Balances in Current Account of Naresh and Vikesh – ₹ 75,000 and ₹ 25,000 respectively; Bank Loan ₹ 8,00,000; Goodwill ₹ 1,00,000; Trade Investments – ₹ 25,000; Profit and Loss Accounts (Debit) – ₹ 15,000.

4.50K viewsAnurag Pathak Changed status to publish March 17, 2024Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Find the Capitalised value of the business from the following information:

2.62K viewsAnurag Pathak Changed status to publish April 19, 2023[CBSE] TS Grewal Solutions Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

P, Q, and R are partners sharing profits and losses in the ratio of 2 : 2 : 1. They admit 5 for 1/5th share. For the purpose of admission of 5, the goodwill of the firm is to be valued at 3 years’ purchase of the average of 5 years’ profit or loss. The profits (Loss) are:

3.22K viewsAnurag Pathak Changed status to publish April 19, 2023[CBSE] TS Grewal Solutions Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Under the average profit method of goodwill valuation, the value of goodwill is determined by

985 viewsAnurag Pathak Changed status to publish April 18, 2023[CBSE] TS Grewal Solutions Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Under the Capitalisation of Super Profit basis of goodwill valuation, goodwill is calculated by

942 viewsAnurag Pathak Changed status to publish April 18, 2023[CBSE] TS Grewal Solutions Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Which of the following factors affects the value of goodwill?

1.21K viewsAnurag Pathak Changed status to publish April 18, 2023[CBSE] TS Grewal Solutions Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Which of the following is not true in relation to goodwill?

1.29K viewsAnurag Pathak Changed status to publish April 18, 2023[CBSE] TS Grewal Solutions Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Goodwill is not accounted in the books if

1.38K viewsAnurag Pathak Changed status to publish April 18, 2023[CBSE] TS Grewal Solutions Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Assertion (A): Goodwill is an intangible asset and is recognised as an asset only when consideration is paid for it.

1.61K viewsAnurag Pathak Changed status to publish April 18, 2023[CBSE] TS Grewal Solutions Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Assertion (A): Goodwill is an intangible asset because of which an enterprise is likely to earn higher profits without putting in extra efforts.

2.67K viewsAnurag Pathak Changed status to publish April 18, 2023[CBSE] TS Grewal Solutions Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Arrange the following steps involved for the Valuation of Goodwill by Average Profit Method:

1.46K viewsAnurag Pathak Changed status to publish April 17, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Capital Accounts of Partners Naresh and Vikesh – ₹ 5,00,000 each; Balances in Current Accounts of Naresh and Vikesh – ₹ 50,000 and ₹ 40,000 respectively; Bank Loan – ₹ 10,00,000; Goodwill ₹ 50,000; Investments – ₹ 25,000; Advertisement Suspense – ₹ 15,000. Based on the above information, Capital Employed for the purposes of the valuation of Goodwill will be

4.60K viewsAnurag Pathak Changed status to publish April 17, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Ram and Prem are partners in a retail business. Balances in Capital and Current Accounts as on 31st March 2022 were:

3.38K viewsAnurag Pathak Changed status to publish April 17, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

The average Profit of the firm is ₹ 6,00,000. Total tangible Assets in the firm are ₹ 28,00,000 and Outside Liabilities are ₹ 8,00,000. In the same type of business, the normal rate of return is 20% of the capital employed. Calculate the value of goodwill by Capitalisation of the Super Profit Method.

2.73K viewsAnurag Pathak Changed status to publish April 17, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Tangible Assets of the firm are ₹ 1,40,000 and outside liabilities are ₹ 4,00,000. Profit of the firm is ₹ 1,50,000 and normal rate of return is 10%. The amount of capital employed will be

1.63K viewsAnurag Pathak Changed status to publish April 17, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Jagat and Kamal are partners in a firm. Their Capitals are Jagat ₹ 3,00,000 and Kamal ₹ 2,00,000. During the year ended 31st March 2023, the firm earned a profit of ₹ 1,50,000. The normal rate of return is 20%. Calculate the value of the Goodwill of the Firm by Capitalisation Method.

2.77K viewsAnurag Pathak Changed status to publish April 17, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

A firm earned ₹ 60,000 as profit, the normal rate of return being 10%. Assets of the firm are ₹ 7,20,000 (excluding goodwill) and Liabilities are ₹ 2,40,000. Find the value of Goodwill by Capitalisation of the Average Profit Method.

2.24K viewsAnurag Pathak Changed status to publish April 17, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

M/s. Supertech India has assets of ₹ 5,00,000, whereas Liabilities are: Partner’s Capitals – ₹ 3,50,000, General Reserve – ₹ 60,000, and Sundry Creditors – ₹ 90,000. If the Normal Rate of Return is 10% and the Goodwill of the firm is valued at ₹ 90,000 at 2 year’s purchase of Super Profit, the Average Profit of the firm will be

4.92K viewsAnurag Pathak Changed status to publish April 16, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Under Super Profit Method, Goodwill is calculated by:

883 viewsAnurag Pathak Changed status to publish April 16, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

A firm earns a profit of ₹ 1,10,000. The Normal Rate of Return is 10%. Assets of the firm are ₹ 11,00,000 and liabilities ₹ 1,00,000. The Value of goodwill by Capitalisation of Average Profit will be

2.80K viewsAnurag Pathak Changed status to publish April 16, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

The total Capital employed in the firm is ₹ 8,00,000, the Normal Rate of Return is 15% and the profit for the year is ₹ 1,20,000. Value of goodwill as per the Capitalisation Method would be:

1.98K viewsAnurag Pathak Changed status to publish April 16, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

The Formula for valuing goodwill under the Capitalisation of Super Profit Method is:

1.06K viewsAnurag Pathak Changed status to publish April 16, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

The average profit of a business over the last five years was ₹ 60,000. The normal yield on capital invested in such a business is estimated at 10% p.a. Capital invested in the business is ₹ 5,00,000. The amount of goodwill, if it is based on 3 year’s purchase of the last 5 years’ super profits will be:

3.47K viewsAnurag Pathak Changed status to publish April 16, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

The weighted Average Profit Method of calculating goodwill is useful when

1.07K viewsAnurag Pathak Changed status to publish April 16, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

0 Votes 1 Ans

Following were the profits of the firm for the last 3 years:

3.00K viewsAnurag Pathak Changed status to publish April 16, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

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