Related InterviewSolutions

• Varun and Kuber are partners in a business. Balance in Capital and Current Accounts on 31st March, 2019 were : `{:(,"Capital Account","Current Account"),("Varun"," Rs. 5,00,000"," Rs. 80,000"),("Kuber"," Rs. 3,50,000"," Rs. 20,000 (Dr.)"):}` Profits of the last five consecutive years ending 31st March were : 2015 Rs. 60,000, 2016 Loss Rs. 40,000, 2017 Rs. 1,30,000, 2018 Rs. 2,00,000 and 2019 Rs. 2,50,000. General Reserve appeared in the books at Rs. 50,000. If the normal rate of return is 10%, find the value of goodwill by Capitalisation of Average Profit Method.
• From the figures given below, calculate goodwill according to the capitalisation of Average Profits Method : (i) Actual Average Profits = Rs. 72,000 (ii) Normal Rate of Return = 10% (iii) Assets = Rs. 9,70,000 (iv) Liabilities = Rs. 4,00,000
• A, B and C are partners in a firm sharig profits and losses in the ratio of 3 : 2 : 1. They decide to take D into partnership for 1/4th share on 1st April, 2017. For this purpose, goodwill is to be valued at 3 times the average annual profits of the previous four or five years whichever is higher. The agreed profits for goodwill purpose of the past five years are as follows: `{:(,,"Rs,"),("Year ending on 31st March 2013",,"1,30,000"),("Year ending on 31st March 2014",,"1,20,000"),("Year ending on 31st March 2015",,"1,50,000"),("Year ending on 31st March 2016",,"1,10,000"),("Year ending on 31st March 2017",,"2,00,000"):}` Calculate the value of Goodwill.
• The goodwill of the firm is NOT affected by:A. Location of the firmB. Reputation of firmC. Better customer serviceD. None of the above
• The super profits of a firm are Rs. 14,000. If the normal rate of return is 7%, calculate the amount of goodwill by super profit capitalisation method.
• Capital invested in a firm is Rs. 3,00,000. Normal rate of return is 10%. Average profits of the firm are Rs. 41,000 (after an abnormal loss of Rs. 2,000). Calculate goodwill at five times the super profits.
• Capial employed by a partnership firm is Rs.5,00,000. Its average profit is Rs. 60,000. The normal rate of return in similar type of business is `10%.` What is the amount of super rofits?A. Rs 50,000B. Rs 10,000C. Rs 6,000D. Rs56,000
• The average profits of a firm is Rs. 48,000. The total assets of the firm are Rs. 8,00,000 Value of other liabilities is Rs. 5,00,000. Average rate of return in the same business is 12 %. Calculate goodwill from capitalisation of average profits method.
• Which of the following is NOT true in relation to goodwill?A. It is an intagible assetB. It is fictitious assetC. It has a realisable valueD. None of the above
• A firm earns a profit of Rs. 37,000 per year. In the same business a 10% return is generally expected. The total assets of the firm are Rs. 4,00,000. The value of other liabilities is Rs. 90,000. Find out the value of goodwill.