CBSE  /  Class 12  /  Accountancy  /  Reconstitution of Partnership Firm: Admission of a Partner

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

  • ₹ 2,00,000
  • ₹ 1,50,000
  • ₹ 3,00,000
  • ₹ 1,00,000

  • 2. 
    Weighted average method of calculating goodwill is used when:

  • Profits are equal
  • Profit has increasing trend
  • Profit has decreasing trend
  • Either (b) or (c)

  • 3. 
    The monetary value of reputation of the business is called:

  • Goodwill
  • Super Profit
  • Surplus
  • Abnormal Profit

  • 4. 
    A firm has an average profit of ₹ 60,000 Rate of return on capital employed is 12.5% p.a. Total capital employed in the firm was ₹ 4,00,000. Goodwill on the basis of two years purchase of super profit is :

  • ₹ 20,000
  • ₹ 15,000
  • ₹ 10,000
  • None of these

  • 5. 
    Under capitalisation method, goodwill is calculated by :

  • Average Profit x No. of Years’ Purchase
  • Super Profit x No. of Years’ Purchase
  • Total of the discounted value of expected future benefits
  • Super Profit -r Expected Rate of Return

  • 6. 
    “Goodwill is nothing more than probability that the old customer will resort to the old place.” This definition of goodwill was given by :

  • Spicer and Pegler
  • ICAI
  • Lord Eldon
  • AICPA

  • 7. 
    What will be the value of goodwill at twice the average of last three years profit if the profits of the last three years were ₹ 4,000, ₹ 5,000 and ₹ 6,000 ?

  • ₹ 5,000
  • ₹ 10,000
  • ₹ 8,000
  • None of these

  • 8. 
    The Valuation of Goodwill is not necessary in Sole Trading:

  • On selling the Firm
  • On making a partner
  • On estimation of Assets
  • On Closing the Firm
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