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The average profit of a business over th...

The average profit of a business over the last five years amounted to Rs60,000 . The normal commerical yield on capital invested in such a business is deemed to be `10%` p.a. The net capital invested in the business is Rs5,00,000. Amount of goodwikll, if it is based on 3 years purchase of last 5 years super profits will be:

A

Rs 1,00,000

B

Rs 1,80,000

C

Rs 30,000

D

Rs 1,50,000

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The correct Answer is:
B
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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

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DK GOEL-CHANGE IN PROFIT SHARING RATIO AMONG THE EXISTING PARTNERS -HOTS
  1. Weighted average method of calculating goodwill is used when:

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  2. The profits earned by a business over the last 5 years are as follows:...

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  3. The average profit of a business over the last five years amounted to ...

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  4. Under the capitalisation method the formula for calculating the goodwi...

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  5. The net assets of a firm including fictitious assets of Rs 5,000 are ...

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  6. Total Capial employed in the firm is Rs8,00,000, reasonable rate of re...

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  7. The average capital employed of a firm is Rs 4,00,000 and the normal ...

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  8. A firm earn Rs 1,10,000. The normal rate of return is 10%. The assets...

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  9. Capital invested in a firm is Rs 5,00,000. Normal rte of return is 10%...

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  10. P and Q were partners sharing profits and losses in the ratio of 3:2. ...

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  11. A, B and C partners sharing profits in the ratio of 4:3:2 decided to...

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  12. A, B and C were partners sharing profits and losses in the ratio of 7:...

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  13. P, Q and R were partners in a firm sharing profits in 5:3:2 ratio. The...

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  14. A, B and C are partners in a firm sharing profits in the tatio of 3:4:...

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  15. A, B and C are partner sharing profits in the ratio of 1:2:3. On 1-4-2...

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  16. X, Y and Z are partners in a firm sharing profits in the ratio 4:3:2. ...

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  17. Arun and Varun are partners sharing profits in the ratio of 4:3. Their...

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  18. X, Y and Z are partners in a firm sharing profits in the ratio of 3:2:...

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

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  20. Any change in the relationship of existin g partners which results in ...

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