Question : Following are the methods of calculating goodwill except:
Option 1: Super profit method
Option 2: Average profit method
Option 3: Weighted Average Method
Option 4: Capital profit method

Question

Question : The profits of last three years are Rs.4,20,000, Rs.3,90,000 and Rs.4,50,000. Capital employed is Rs.40,00,000 and normal rate of return is 10%. The amount of goodwill calculated on the basis of super profit method for three years of purchase will be:

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Answer 1

Correct Answer: Capital profit method

Solution : Capital profit method is not the method of calculating goodwill. Super profit, average profit and weighted average profit methods are the methods of calculating goodwill. Hence, the correct option is 4.

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Question : Following are the methods of calculating goodwill except:Option 1: Super profit methodOption 2: Average profit methodOption 3: Weighted Average MethodOption 4: Capital profit method

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Question : The profits of last three years are Rs.4,20,000, Rs.3,90,000 and Rs.4,50,000. Capital employed is Rs.40,00,000 and normal rate of return is 10%. The amount of goodwill calculated on the basis of super profit method for three years of purchase will be:

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Question : Following are the methods of calculating goodwill except:
Option 1: Super profit method
Option 2: Average profit method
Option 3: Weighted Average Method
Option 4: Capital profit method