Page 3 - GOODWILL QUESTIONS

Question: 9 of 36 QID: 155 Marks: 1

On the admission of a new partner, it is decided that goodwill of the firm be valued at 2 years purchase of average profits for the past 3 years
which amounted to Rs.8,620, Rs.9,430 and Rs.11,800 respectively. The value of goodwill is :

A. Rs.19,500 B. Rs.19,900

C. Rs.10,000 D. None of the above

Question: 10 of 36 QID: 156 Marks: 1

If old ratio between A & B is 1 : 1 & new ratio between A, B & C is 4 : 3 : 2 Recorded Goodwill of Rs.90,000 appears in B/S. Which accounts will
be affected if they decide to write off goodwill immediately ?

A. A A/c and B A/c B. A A/c and C A/c

C. B A/c and C A/c D. None

Question: 11 of 36 QID: 157 Marks: 1

Sacrificing ratio is used to distribute _____ on admission of a new partner :

A. Goodwill B. Reserves

C. Unrecorded assets D. Profits on revaluation

Question: 12 of 36 QID: 158 Marks: 1

The profits of last four years are :

2000 Rs.40,000

2001 Rs.50,000

2002 Rs.60,000

2003 Rs.50,000

The value of goodwill on the basis of 3 years purchase of average profits based on last 4 years :

A. Rs.1,00,000 B. Rs.1,50,000

C. Rs.2,00,000 D. None

Page 3 of 9 Print ID: 202062152357185