Page 2 - GOODWILL QUESTIONS 12

Question: 5 of 36 QID: 151 Marks: 1

Capital employed in a business is Rs.1,50,000. Profits are Rs.50,000 and the normal rate of profit is 20%. The amount of goodwill as per
capitalization method will be

A. Rs.2,00,000 B. Rs.1,00,000

NARULA ACADEMY
C. Rs.3,00,000 D. Rs.1,50,000

Question: 6 of 36 QID: 152 Marks: 1

A firm earned net profits during last 3 years as follows :

2001 Rs.15,000

2002 Rs.20,000

2003 Rs.25,000
The capital investment in the firm is Rs.1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of
2 years purchase of average Super profits earned during 3 years is :

A. Rs.10,000 B. Rs.12,000

C. Rs.15,000 D. Rs.8,000

Question: 7 of 36 QID: 153 Marks: 1

X and Y are partners in a firm with capital of Rs.18,000 and Rs.20,000. Z was admitted for 1/3rd share in profits and brings Rs.24,000 as
capital, calculate the amount goodwill :

A. Rs.10,000 B. Rs.20,000

C. Rs.15,000 D. Rs.24,000

Question: 8 of 36 QID: 154 Marks: 1

When there is no Goodwill Account in the books and goodwill is raised, _______ account will be debited.

A. Partner's capital A/c B. Goodwill A/c

C. Cash A/c D. Reserve A/c

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