Question : Goodwill of the firm on the basis of 2 years' purchase of average profit of the last 3 years is Rs.25.000. Find average profit.
Option 1: Rs.50,000
Option 2: Rs.25,000
Option 3: Rs.10,000
Option 4: Rs.12,500
Correct Answer: Rs.12,500
Solution : Goodwill = Average Profit X Number of years purchase Rs.25,000 = Average Profit X 2 Average Profit = Rs.25,000/2 = Rs.12,500 Hence, the correct option is 4.
Question : Profits of last three years are Rs.4,20,000, Rs.3,90,000 and Rs.4,50,000. The value of goodwill on the basis of two years purchase of three year average profit is:
Question : Calculate the value of goodwill at 3 years' purchase when: Capital employed Rs.2,50,000; Average profit Rs.30,000 and normal rate of return is 10%.
Question : Average profit earned by a firm is Rs. 2,50,000 which includes overvaluation of stock of Rs 10,000 on average basis. Capital invested in the business is Rs. 14,00,000 and the normal rate of return is 15%. Calculate goodwill of the firm on the basis of 4 times the super
Question : The goodwill of a firm is Rs.54,000 valued at 4 years purchase of super profit. The capital employed of firm is Rs.2.00,000 and normal rate of return is 10%. The average profit of firm is:
Question : A firm earned average profit of Rs.45.000. Rate of return on capital employed is 12% p.a. Total capital employed is Rs.4,00,000. Goodwill on the basis of two years purchase of super profit is:
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