Reconstitution Of Partnership

Name an asset related to name and fame of business, which helps in earning profit?

• Factory

• Goodwill

• Copyright

• Office

What is average Profit?

• Total profit/ Number of years

• Total profit* Number of Years

• Total Profit

• Maximum Profit

Profit earned over and above the normal Profit?

Name an intangible asset of business other than goodwill which helps in increasing profit?

• Machines

• Brand Image

• Land

• Warehouse

What is capital Employed

• Total Assets

• Current Assets

• Current Assets - Current Liabilities

• fixed assets+ current assets - Current Liabilities

What is Super Profit?

• Average Profit- Normal Profit

• Normal rate of return on capital employed

• Average Profit + Normal Profit

• Goodwill

Calculate goodwill

If super profit is 10,000 and goodwill is to be valued at two year's purchase of super profit?

• 10,000

• 5,000

• 15,000

• 20,000