Question : The profits of last three years are Rs.4,20,000, Rs.3,90,000 and Rs.4,50,000. Capital employed is Rs.40,00,000 and normal rate of return is 10%. The amount of goodwill calculated on the basis of super profit method for three years of purchase will be:

Option 1: Rs.80,000  

Option 2: Rs.40,000

Option 3: Rs.20,000

Option 4: Rs.60,000

Question : Weighted average profit method of calculating goodwill is used when

Option 1: Profits are unequal

Option 2: Profits are fluctuating

Option 3: Profit shows a trend

Option 4: None of the above

Question : Under average profit methods goodwill is calculated as

Option 1: Super profit x No. of years purchases

Option 2: Average profit X No. of years purchases

Option 3: Capital employed X  No. of years purchases

Option 4: Super profit/expected rate of return

Question :  Under the super profit method, goodwill is calculated by

Option 1: Number of years purchase X Average profit

Option 2: Number of years purchase X Super profit

Option 3: super profit/normal rate of return

Option 4: super profit - normal profit 

Question : Which of the following Indian states has the highest proportion of poor people?

Option 1: Kerala

Option 2: Bihar

Option 3: Orissa
 

Option 4: Punjab