Home
Class 12
ACCOUNTS
Capital invested in a firm is Rs 5,00,00...

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

A

Rs 72,000

B

Rs 40,000

C

Rs 2,40,000

D

Rs 1,80,000

Text Solution

Verified by Experts

The correct Answer is:
B
Promotional Banner

Topper's Solved these Questions

  • CHANGE IN PROFIT SHARING RATIO AMONG THE EXISTING PARTNERS

    DK GOEL|Exercise HOTS|25 Videos

  • CBSE SAMPLE QUESTION PAPER - 2018- 19

    DK GOEL|Exercise Questions|20 Videos

  • COMMON SIZE STATEMENTS

    DK GOEL|Exercise Multiple Choice Questions|14 Videos

Similar Questions

Explore conceptually related problems

Capital invested in a firm is Rs. 3,00,000. Normal rate of return is 10%. Average profits of the firm are Rs. 41,000 (after an abnormal loss of Rs. 2,000). Calculate goodwill at five times the super profits.

A firm earn Rs 1,10,000. The normal rate of return is 10%. The assets of the firm amounted to Rs 11,00,000 and liabilities to Rs1,00,000. Value of goodwill by capitalisation of Average Actual Profits will be,

A firm earns Rs. 1,10,000. The normal rate of return is 10%. The asset firm amounted to Rs. 11,00,000 and liabilities to Rs. 1,00,000 value of goodwill by capitalisation of Average Actual Profits will be :-

The average capital employed of a firm is Rs 4,00,000 and the normal rate of return is 15%. The average profit of the firm is Rs 80,000 per annum. If the remuneration of the partners is estimated to be Rs10,000 per annum, then on the basis of two years purchase of super-profit, the value of teh Goodwill will be:

1. The goodwill of a firm is to be worked out at three years’ purchase of the average profits of the last five years which are as follows: {:(Year,Profits(Loss)(Rs)),(2012,10000),(2013,15000),(2014,4000),(2015,(5000)),(2016,6000):} 2. The capital employed of the firm is Rs. 1,00,000 and normal rate of return is 8%, the average profits for last 5 years are Rs. 12,000 and goodwill is to be worked out at 3 years’ purchase of super profits, 3. Rama Brothers earn an average profit of Rs. 30,000 with a capital of Rs. 2,00,000. The normal rate of return in the business is 10%. Using capitalisation of super profits method work out the value the goodwill of the firm.

The net assets of a firm including fictitious assets of Rs 5,000 are Rs 85,000. The net liabilities of the firm are Rs30,000. The normal rate of return is 10% and the average profits of the firm are Rs8,000. Calculate the goodwill as per capitalisation of super profits.

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |