Valuation of Goodwill, for class XII as per CBSE 2021-22

Goodwill is _____

• Tangible Asset

• Intangible Asset

• Fictitious Asset

• Both Intangible and Fictitious Asset

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.

• Rs. 50,000

• Rs. 25,000

• Rs. 10,000

• Rs. 12500

What are super profits

• Actual profit – Normal Profit

• Normal Profit - Actual profit

• Actual profit + Normal Profit

• None of the above

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

• Rs.20,000

• Rs. 30,000

• Rs. 25,000

• None of the above

Calculate the value of goodwill at 3 years' purchase of super profit when: Capital employed Rs. 2,50,000; Average profit Rs. 30,000 and normal rate of return is I0%

• Rs. 3000

• Rs. 25,000

• Rs. 30,000

• Rs. 15,000

Which of the following items are added to previous year’s profits for finding normal profits for valuation of goodwill.?

• Loss on sale of fixed assets

• Loss due to fire, earthquake etc

• Undervaluation of closing stock

• All of the above

The excess amount which the firm can get on selling its assets over and above the saleable value of its assets is called

• Surplus

• Super profits

• Goodwill

• Reserve

Capital invested in a firm is 5,00,000.Normal rate of return is 10% .Average profit of the firm are 64,000(after an abnormal loss of 4,000).Value of goodwill at four times the super profits will be:

• Rs.72,000

• Rs. 40,000

• Rs. 2,40,000

• Rs 1,80,000

If Super profit of a firm is 10,000,its value of goodwill will be ………….if rate of return is 8%

• Rs 1,25,000

• Rs 1,50,000

• Rs 1,20,000

• Rs 1,40,000

Capital employed in the business is ₹ 2,00,000,Normal rate of return(NRR) on capital employed is 15 % .During the year firm earned a profit of ₹ 48,000.Find the correct option if goodwill is 3 years purchase of super profit.

• ₹ 54,000

• ₹ 60,000

• ₹ 50,000

• ₹ 48,000