Question : A firm earns Rs.2,20,000. The normal rate of return is 10%. The assets of the firm amounted to Rs.22,00,000 and liabilities are Rs.2,00,000. Value of goodwill by capitalisation of actual average profits will be:

Option 1: Rs.10,000

Option 2: Rs.2,00,000

Option 3: Rs.4,00.000

Option 4: Rs.20,000

Question : From the following information, (i) Capitalisation Method and (ii) at 3 year’s purchase of super profits: What will be the amount of goodwill? 

(i) Total Assets Rs. 10,00,000

(ii) External Liabilities Rs. 1,80,000

(iii) Normal Rate of Return 10%

(iv) Average Net Profit of last five years Rs. 1,00,000

Option 1: By capitalization method Rs 1,80,000, super profit method Rs 54,000

Option 2: By capitalization method Rs 54,000, super profit method Rs 1,80,000

Option 3: By capitalization method Rs 1,80,000, super profit method Rs 1,80,000

Option 4: By capitalization method Rs 54,000, super profit method Rs 54,000

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%.

Option 1: Rs.33,000

Option 2: Rs.25,000

Option 3: Rs.30,000

Option 4: Rs.15,000

Question : A firm earned Rs. 60,000 as profit, the normal rate of return being 10%. Assets of the firm are Rs. 7,20,000 (excluding goodwill) and Liabilities are Rs. 2,40,000. The value of goodwill by Capitalisation of Average Profit Method is 

Option 1: Rs 1,20,000

Option 2: RS 60,000

Option 3: Rs 4,80,000

Option 4: Rs 2,40,000

Question : Capital invested in a firm is Rs.5,00,000. Normal rate of return is 10%. Average profits of the firm are 64,000 (after an abnormal loss of Rs.4,000). Value of goodwill at four times the super profits will be:

Option 1: Rs.72,000

Option 2: Rs.40,000

Option 3: Rs.2,40,000

Option 4: Rs.1,80,000