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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.

4.34K 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:

2.53K 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:

3.11K 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

930 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

881 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?

1.14K 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?

1.22K 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

1.31K 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.

1.52K 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.

2.54K 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:

1.38K 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

4.42K 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:

3.26K 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.

2.62K 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

1.58K 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.

2.68K 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.

2.13K 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

4.71K 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:

824 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

2.68K 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:

1.91K 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:

953 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:

3.34K 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

1.00K 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:

2.89K viewsAnurag Pathak Changed status to publish April 16, 2023Accountancy Class 12th Goodwill MCQs (Goodwill)

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