Question : Amrit Daily Needs acquired the business of Shri Shivam for a purchase consideration of Rs.5,00,000 payable by cheque. The assets acquired and liabilities taken over are:
| Assets: | Liabilities: |
| Furniture 10,000 |
Creditors 5,20,000 |
| Inventory 7,50,000 |
Salaries Payable 75,000 |
| Debtors 1,50,000 | Outstanding Expenses 15,000 |
The amount of goodwill will be ------
Option 1: Rs 2,00,000
Option 2: Rs 5,00,000
Option 3: 3,00,000
Option 4: None of the above
Correct Answer: Rs 2,00,000
Solution : Answer = Rs 2,00,000
Goodwill is the difference between net assets and purchase consideration
Net assets = 9,10,000-6,10,000=3,00,000
Purchase consideration Rs 5,00,000
Goodwill = 2,00,000
Hence, the correct option is 1.
Related Questions
Question : Following were the profits of the firm for the last 3 years
| Years | Profit |
| 2019-2020 | 3,00,000 (including abnormal gain of Rs 90,000) |
| 2020-2021 |
2,40,0000 (after charging abnormal loss of Rs 1,20,000) |
| 2021-2022 |
3,60,000 (excluding Rs 1,20,000 payable on the insurance of machinery) |
Goodwill of the firm on the basis of 4 years purchase of the average profit for the last three years will be
Option 1: Rs 12,00,000
Option 2: RS 10,80,000
Option 3: Rs 12,80,000
Option 4: none of these
Question : The below table represents the monthly income of 100 families in a locality.
| Monthly income range | Number of families |
| Income more than Rs. 10,000 | 100 |
| Income of more than Rs. 13,000 | 85 |
| Income of more than Rs. 16,000 | 69 |
| Income more than Rs. 19,000 | 50 |
| Income more than Rs. 22,000 | 33 |
| Income more than Rs. 25,000 | 15 |
The number of families having an income range (in Rs.) of 19000-22000 is:
Option 1: 17
Option 2: 19
Option 3: 22
Option 4: 24
Question : O, M and R are partners sharing profits and losses equally. They agree to admit Dev for equal share. For this purpose, goodwill is to be valued at four years purchase of average profit of last five years. Profits for the past five years were:
| 31st March,2016 | 31st March,2017 | 31st March,2018 | 31st March,2019 |
31st March,2020 |
|
Profit/(Loss) |
||||
| (Rs.) 30,000 | 70,000 | 1,00,000 | 1,40,000 |
(1,20,000) |
On 1st April, 2019, 5 cycles costing Rs. 20,000 were purchased and were wrongly debited to travelling expenses. Depreciation on cycles was to be charged @ 25% p.a. value of goodwill will be
Option 1: 1,88,000
Option 2: 1,08,000
Option 3: 2,00,000
Option 4: 3,20,000
Question : Following is the extract from the Balance Sheet of KBC Ltd:
| Equity and liabilities | 31st March, 2020(Rs) | 31st march, 2019(Rs) |
| Surplus, i.e. Balance in Statement of Profit and loss | 8,00,000 | 5,00,000 |
| Dividend Payable | 30,000 | ........... |
Dividend Proposed for the years ended 31st March, 2019 and 2020 were Rs 35,00,000 and Rs 23,50,000 respectively. Net profit before tax and extraordinary items are
Option 1: Rs 6,00,000
Option 2: Rs 38,00,000
Option 3: Rs 26,50,000
Option 4: Rs 3,00,000
Question : Following is the extract from the Balance Sheet of KBC Ltd:
| Equity and liabilities | 31st March, 2020(Rs) | 31st march, 2019(Rs) |
| Surplus, i.e. Balance in Statement of Profit and loss | 8,00,000 | 5,00,000 |
| Dividend Payable | 30,000 | ........... |
Dividend Proposed for the years ended 31st March, 2019 and 2020 were Rs 35,00,000 and Rs 23,50,000 respectively. Net profit before tax and extraordinary items are
Option 1: Rs 6,00,000
Option 2: Rs 38,00,000
Option 3: Rs 26,50,000
Option 4: Rs 3,00,000
