Question : The value of goodwill can be defined as excess of amount paid for business over and above its……..

Option 1: Total assets

Option 2: Current assets

Option 3: Net assets

Option 4: None of these

Question : The value of goodwill can be defined as excess of amount paid for business over and above its ________

Option 1: Total Assets

Option 2: Current Assets

Option 3: Net Worth

Option 4: Working Capital

Question : The reserve held by Commercial Banks over and above the statutory minimum with the RBI are called:

Option 1: Cash reserve

Option 2: Deposits reserves

Option 3: excess reserves

Option 4: momentary reserves

Question : The net assets of the firm including fictitious assets of Rs.5,000 are Rs.85,000. The net liabilities of the firm are Rs.30,000. The normal rate of return is 10% and the average profits of the firm are Rs.8,000. Calculate the goodwill as per capitalization of super profits.

Option 1: Rs.20,000

Option 2: Rs.30,000

Option 3: Rs.25,000

Option 4: None of these

Question :

Asha, Naveen and Shalini were partners in a firm sharing profits in the ratio of 5:3:2. Goodwill appeared in their books at a value of Rs. 80,000 and General Reserve at Rs. 40,000. Naveen decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at Rs. 1,20,000.The amount payable to Naveen is .

Option 1: Rs 24,000

Option 2: Rs 48,000

Option 3: Rs 74,000

Option 4: None of the above