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
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.
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:
Question : Weighted average profit method of calculating goodwill is used when
Question : Under average profit methods goodwill is calculated as
Question : Under the super profit method, goodwill is calculated by
Question : Which of the following Indian states has the highest proportion of poor people?
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