Quiz  /  Super Profit Method Class 12 MCQ Questions With Answers

  • 1. 
    How many general method(s) of goodwill valuation

  • 6
  • 1
  • 4
  • 3

  • 2. 
    Capital employed in the business is ₹ 2,00,000,Normal rate of return(NRR) on capital employed is 15 % .During the year firm earned a profit of ₹ 48,000.Find the correct option if goodwill is 3 years purchase of super profit.

  • ₹ 54,000
  • ₹ 60,000
  • ₹ 50,000
  • ₹ 48,000

  • 3. 
    Capital Employed=

  • Tangible assets- outside liabilities
  • Average profit-Tangible assets
  • Super profit -outside liabilities
  • None of the above

  • 4. 
    The profits for the last 3 years were- 1st year-4,000 ,IInd year-6,000 and IIIrd year-2,000.Select correct option for goodwill on the basis of 3 years purchase of average profit.

  • ₹ 12,500
  • ₹ 12,000
  • ₹ 13,000
  • ₹ 16,000

  • 5. 
    A firms earn ₹ 1,20,000 as its annual profits.The normal rate of profit being 10 % .Assets of the firm are ₹ 14,40,000 and liabilities are ₹ 4,40,000.Tick the correct option for goodwill by capitalisation method.

  • ₹ 4,00,000
  • ₹ 2,80,000
  • ₹ 2,00,000
  • ₹ 3,60,000

  • 6. 
    Which of the following is/are method(s) of valuation of goodwill ?

  • Average profit method
  • super profit method
  • capitalisation method
  • All of the above

  • 7. 
    Goodwill by super profit=

  • SPxNRR/100
  • SPx100/AP
  • SPx No of year purchase
  • SPx capital employed/100

  • 8. 
    Super profit =

  • Average profit-Normal profit
  • Normal profit-actual profit
  • Average Profit-capital employed
  • None of the above

  • 9. 
    Nature of goodwill is

  • intangible asset
  • fictitious asset
  • long term liability
  • current asset

  • 10. 
    Find out that goodwill which is accounted for as per Accounting Standard 26

  • Purchased goodwill only
  • Self generated goodwill only
  • both(a) and (b)
  • Goodwill brought in by a partner
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