Question : Under the Capitalisation Method of valuation of Goodwill, the formula for calculating goodwill is:

Option 1: Super profits multiplied by the rate of return

Option 2: Average profits multiplied by the rate of return

Option 3: Super profits are divided by the rate of return

Option 4: Average profits divided by the 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 : Capital invested in a firm is Rs. 10,00,000. Normal Rate of Return of 10%. The average profits of the firm are Rs. 1,28,000 (after an abnormal loss of Rs. 8,000). Value of Goodwill at  two years' purchase of Super Profit will be

Option 1:  Rs. 72,000

Option 2: Rs. 40,000

Option 3: Rs. 2,40,000

Option 4: Rs. 1,80,000

Question : A firm earned Rs. 60,000 as profit, the normal rate of return being 10%. Assets of the firm are Rs. 7,20,000 (excluding goodwill) and Liabilities are Rs. 2,40,000. The value of goodwill by Capitalisation of Average Profit Method is 

Option 1: Rs 1,20,000

Option 2: RS 60,000

Option 3: Rs 4,80,000

Option 4: Rs 2,40,000

Question : Under which method of valuation of goodwill, normal rate of return is not considered?

Option 1: Average profit method

Option 2: Capitalisation method

Option 3: Super profit method

Option 4: All of these