Chapter 4: Goodwill in Partnership Accounts May 20, 2024 Maven Leave a Comment Welcome to the Chapter 4: Goodwill in Partnership Accounts Quiz! This quiz is based on the book back questions. Name Email 1. Which of the following is true? Super profit = Total profit / number of years Super profit = Weighted profit / number of years Super profit = Average profit - Normal profit Super profit = Average profit x Years of purchase None 2. The total capitalised value of a business is Rs. 1,00,000; assets are Rs. 1,50,000 and liabilities are Rs. 80,000. The value of goodwill as per the capitalisation method will be Rs. 40,000 Rs. 70,000 Rs. 1,00,000 Rs. 30,000 None 3. Super profit is the difference between Capital employed and average profit Assets and liabilities Average profit and normal profit Current year's profit and average profit None 4. Which of the following statements is true? Goodwill is an intangible asset Goodwill is a current asset Goodwill is a fictitious asset Goodwill cannot be acquired None 5. Book profit of 2017 is Rs. 35,000; non-recurring income included in the profit is Rs. 1,000 and abnormal loss charged in the year 2017 was Rs. 2,000, then the adjusted profit is Rs. 36,000 Rs. 35,000 Rs. 38,000 Rs. 34,000 None 6. When the average profit is Rs. 25,000 and the normal profit is Rs. 15,000, super profit is Rs. 25,000 Rs. 5,000 Rs.10,000 Rs.15,000 None 7. Identify the incorrect pair Goodwill under Average profit method - Average profit - Number of years of purchase Goodwill under Super profit method - Super profit - Number of years of purchase Goodwill under Annuity method - Average profit - Present value annuity factor Goodwill under Weighted average - Weighted average profit - Number of years of profit method purchase None 8. The average rate of return of similar concerns is considered as Average profit Normal rate of return Expected rate of return None of these None Time's up Related Posts:Chapter 3: Accounts of Partnership Firms FundamentalsChapter 12: Final Accounts of Sole Proprietors – IChapter 13: Final Accounts of Sole Proprietors – IIChapter 1: Accounts from Incomplete Records
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