Question : Hari and Krishan were partners sharing profits and losses in the ratio of 2:1. They admitted Shyam as a partner for 1/5th share in the profits. For this purpose the Goodwill of the fir was to be valued on the basis of three year; purchases of last five years' average profits. The profits for the last five years were:

Year          2013-14  2014-15   2015-16   2016-17    2017-18

Profit (Rs.) 50,000    40,000     75,000     (25,000)     50,000

Calculate Goodwill of the firm after adjusting the following:

The profit of 2014-15 was calculated after charging Rs. 10,000 for abnormal loss of goods by fire

Option 1: Rs 50,000

Option 2: Rs 20,000

Option 3: Rs 1,00,000

Option 4: 1,20,000

 

Question : Goodwill of the firm on the basis of 2 years' purchase of average profit of the last 3 years is Rs.25.000. Find average profit.

Option 1: Rs.50,000

Option 2: Rs.25,000

Option 3: Rs.10,000

Option 4: Rs.12,500

Question : A, B and C  were partners in a firm sharing profits in the ratio of 2:2:1.

The firm closes its books on 31st March, every year. On 31-12-2015 C died. On that date, his Capital account showed a credit balance of Rs.3,80,000 and Goodwill of the firm was valued at Rs. 1,20,000. There was a debit balance of Rs.50,000 in the Profit & Loss A/c.

C’s share of profit in the year of his death was to be calculated on the basis of the average profit of the last five years. The average profit for the last five years was Rs.75,000.
Q. Amount due to C  transferred to his executors’ account will be -----------

Option 1: 4,00,000

Option 2: RS 4,05,250

Option 3: Rs 4,05,000

Option 4: None of the above

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

Rs 24,000, Rs 26,000, Rs 28,000  Rs 36,000 and Rs 4,000 (loss) based on 2 years' purchase of last 5 years' profits. Value of goodwill will be:

Option 1: Rs 47,200

Option 2: Rs 44,000

Option 3: Rs 2,20,000

Option 4: Rs 2,26,000

Question : Profits of last three years are Rs.4,20,000, Rs.3,90,000 and Rs.4,50,000. The value of goodwill on the basis of two years purchase of three year average profit is:

Option 1: Rs.3,60,000

Option 2: Rs.12,60,000

Option 3: Rs.8,40,000

Option 4: Rs.4,20,000