Page 1 - GOODWILL QUESTIONS 1

NARULA ACADEMY WWW.NARULAACADEMY.IN
GOODWILL QUESTIONS

Name:
Date:

NARULA ACADEMY

Question: 1 of 36 Marks: 1

Weighted average method is calculating goodwill is used when :

A. B. Profits has decreasing trend
Profits has increasing trend

C. Either (b) or (c) D. Profits are unequal

Question: 2 of 36 QID: 148 Marks: 1

Which of the following statement is false ?

A. Profit and Loss appropriation account is prepared to show B. The liability of all the partners is jointly and severally unlimited
the distribution of profits among partners

C. Partnership deed in the mutual agreement between D. In the absence of partnership agreement, partners share
partners profits in capital ratio

Question: 3 of 36 QID: 149 Marks: 1

The profits of last 5 years are Rs.75,000, Rs.90,000, Rs.80,000, Rs.1,00,000 and Rs.80,000. Find the value of goodwill, if its calculated an
average profits of last 5 years on the basis of 3 years of purchase :

A. Rs.85,000 B. Rs.2,55,000

C. Rs.2,75,000 D. Rs.2,85,000

Question: 4 of 36 QID: 150 Marks: 1

What would be the amount of actual average profit if goodwill is valued Rs.98,000 at 5 years purchase of super profit, normal rate of return is
10% and average capital employed is Rs.5,00,000 ?

A. Rs.69,600 B. Rs.1,48,000

C. Rs.4,40,000 D. Rs.48,000

Page 1 of 9 Print ID: 202062152357185