WorksheetsGOODWILL AND ITS VALUATION
Total questions: 15
Worksheet time: 9mins
Nature of goodwill is
intangible asset
fictitious asset
long term liability
current asset
Which of the following is/are method(s) of valuation of goodwill ?
Average profit method
super profit method
capitalisation method
All of the above
Which of the following factor(s) affect goodwill
Nature of business
Efficiency of management
Location
All of the above
Find out that goodwill which is accounted for as per Accounting Standard 26
Purchased goodwill only
Self generated goodwill only
both(a) and (b)
Goodwill brought in by a partner
The profits for the last 3 years were- 1st year-4,000 ,IInd year-6,000 and IIIrd year-2,000.Select correct option for goodwill on the basis of 3 years purchase of average profit.
₹ 12,500
₹ 12,000
₹ 13,000
₹ 16,000
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
Average profit of firm is ₹ 3,00,000.total tangible assets in the firm are ₹ 28,00,000 and outside liabilities ₹ 8,00,000.The NRR is 10% of capital employed.calculate goodwill by capitalisation of super profit method.
₹ 14,00,000
₹ 16,00,000
₹ 18,00,000
₹ 10,00,000
Super profit =
Average profit-Normal profit
Normal profit-actual profit
Average Profit-capital employed
None of the above
Goodwill by super profit=
SPxNRR/100
SPx100/AP
SPx No of year purchase
SPx capital employed/100
How many general method(s) of goodwill valuation
6
1
4
3
While calculating capital employed the following assets are ignored.
fixed assets
floating assets
current assets
fictitious assets
Future maintainable profit – normal profit =
Average capital employed
Goodwill
Super profit
Capital employed
Capital employed =
Assets – outside liabilities
Assets - shareholder funds
Assets- Current liabilities
Assets - Long term liabilities
Interest on investment is_____________ while calculating future maintainable profit.
Subtracted
Added
Multiplied
Divided
Capital employed can also be referred to as:
Net Assets
Total of Partner's Capital
External liabilities
None of the above
