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Average profit of a business over the la...

Average profit of a business over the last five years was Rs.60,000. The normal commercial yield on capital invested in such business is `10%` p.a. Net capital invested in the business is Rs.5,00,000. Amount of goodwill, if it is based on year's purchase of last 5 year 's super profits will be

A

Rs.1,00,000.

B

Rs.1,80,000.

C

Rs.30,000.

D

Rs.1,50,000.

Text Solution

Verified by Experts

The correct Answer is:
c
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TS GREWAL-MCQ-Multiple Choice Questions (MCQs)
  1. Goodwill of the firm is not affected by

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  2. Weighted Average Profit Method of calculating goodwill is used when

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  3. Average profit of a business over the last five years was Rs.60,000. T...

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  4. Under the Capitalisation of Super Profit , the formula for calculating...

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  5. Total assets of a firm including fictitions assets of Rs. 5,000 are R...

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  6. Total capital employed in the firm is Rs. 8,00,000, Normal Rate of Ret...

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  7. A firm earns Rs. 1,10,000. The normal rate of return is 10% . Assets o...

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  8. In the event of change in profit - sharing ratio , General Reserve app...

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  9. In the event of change in profit - sharing ratio, Workmen Compensation...

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  10. In the event of change in profit- sharing ratio, investments Fluctuati...

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  11. Assets are revalued and liabilities are reassessed at the time of chan...

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  12. At the time of change in profit- sharing ratio, sacrificing ratio is d...

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  13. If the existing profit- sharing ratio among A , B and C of 3 : ...

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  14. X and Y shared profits and losses in the ratio of 3 : 2 With eff...

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  15. X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2...

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  16. A, B and C are partners sharing profits in the ratio of 5 : 3 : 2 ....

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  17. A,B and C are partners sharing profits in the ratio of 5 : 3 : 2 . The...

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  18. Sacrificing Ratio is

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  19. Gaining Ratio is

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  20. Any change in the relationship of existing partners which result in an...

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