…. may be described as the aggregate of those intangible attributes of a business which contribute ti its superior earning capacity over a normal return on investment
Correct
Incorrect
Question 2 of 75
2. Question
1 points
Category: Fundamentals of Accounting & Auditing
Goodwill brought in by incoming partner in cash for joining in a partnership firm is taken away by the old partners in their –
Correct
Incorrect
Question 3 of 75
3. Question
1 points
Category: Fundamentals of Accounting & Auditing
Which of the following factor generally contribute to the value of goodwill of a firm?
Correct
Incorrect
Question 4 of 75
4. Question
1 points
Category: Fundamentals of Accounting & Auditing
Following are the factors affecting goodwill except –
Correct
Incorrect
Question 5 of 75
5. Question
1 points
Category: Fundamentals of Accounting & Auditing
Which of the following factor generally contribute to the value of goodwill of a firm?
Correct
Incorrect
Question 6 of 75
6. Question
1 points
Category: Fundamentals of Accounting & Auditing
In which of the following case the need for the valuation of goodwill in a firm may arise?
Correct
Incorrect
Question 7 of 75
7. Question
1 points
Category: Fundamentals of Accounting & Auditing
Which of the following asset is compulsory to revalue at the time of admission of a new partner?
Correct
Incorrect
Question 8 of 75
8. Question
1 points
Category: Fundamentals of Accounting & Auditing
Which of the following formula is used to calculate goodwill under simple average profit method?
Correct
Incorrect
Question 9 of 75
9. Question
1 points
Category: Fundamentals of Accounting & Auditing
Under average profit basis goodwill is calculated by –
Correct
Incorrect
Question 10 of 75
10. Question
1 points
Category: Fundamentals of Accounting & Auditing
Which of the following formula is used to calculate goodwill under super profit method?
Correct
Incorrect
Question 11 of 75
11. Question
1 points
Category: Fundamentals of Accounting & Auditing
Weighted average method of calculating goodwill should be followed when-
Correct
Incorrect
Question 12 of 75
12. Question
1 points
Category: Fundamentals of Accounting & Auditing
Which of the following formula is used to calculate goodwill under weighted average profit method?
Correct
Incorrect
Question 13 of 75
13. Question
1 points
Category: Fundamentals of Accounting & Auditing
Balance sheet prepared after the new partnership agreement, assets and liabilities are recorded at –
Correct
Incorrect
Question 14 of 75
14. Question
1 points
Category: Fundamentals of Accounting & Auditing
The correct entry for recording losses on revaluation would be:…
Correct
Incorrect
Question 15 of 75
15. Question
1 points
Category: Fundamentals of Accounting & Auditing
A new partner can be admitted with the consent of –
Correct
Incorrect
Question 16 of 75
16. Question
1 points
Category: Fundamentals of Accounting & Auditing
On the admission of new partner, it is believed that the assets have changed in value. to record a decrease in the value of an asset the double entry should be:
Correct
Incorrect
Question 17 of 75
17. Question
1 points
Category: Fundamentals of Accounting & Auditing
Scarifying ratio is different between … and …
Correct
Incorrect
Question 18 of 75
18. Question
1 points
Category: Fundamentals of Accounting & Auditing
If goodwill is to be created and then immediately written off, the correct method of entering this in the accounts would be –
Correct
Incorrect
Question 19 of 75
19. Question
1 points
Category: Fundamentals of Accounting & Auditing
Reserves created out of profits or balance in profit & loss A/c at the time of admission of a new partner must be transferred to the capital accounts of the old partners in the …..
Correct
Incorrect
Question 20 of 75
20. Question
1 points
Category: Fundamentals of Accounting & Auditing
Under super profit basis goodwill is calculated by:…..
Correct
Incorrect
Question 21 of 75
21. Question
1 points
Category: Fundamentals of Accounting & Auditing
To revalue assets & liabilities on admission, retirement or death of partner…. is opened
Correct
Incorrect
Question 22 of 75
22. Question
1 points
Category: Fundamentals of Accounting & Auditing
A & B are partner for 5:3. They take C and new profit sharing ratio will be 3:2:1. Profit or loss on revaluation is shared by ……….
Correct
Incorrect
Question 23 of 75
23. Question
1 points
Category: Fundamentals of Accounting & Auditing
Profit or loss one revaluation is shared among the partners in ….. ratio.
Correct
Incorrect
Question 24 of 75
24. Question
1 points
Category: Fundamentals of Accounting & Auditing
Sometimes, time all the partners including the new partners may agree not to alter the book value of assets and liabilities even when they agree to revalue them. in order to record this,……is opened
Correct
Incorrect
Question 25 of 75
25. Question
1 points
Category: Fundamentals of Accounting & Auditing
Under annuity basis goodwill is calculated by –
Correct
Incorrect
Question 26 of 75
26. Question
1 points
Category: Fundamentals of Accounting & Auditing
The amount that the incoming partner pays for goodwill is known as –
Correct
Incorrect
Question 27 of 75
27. Question
1 points
Category: Fundamentals of Accounting & Auditing
When required amount for premium for goodwill is brought in by new partner and this amount is immediately withdrawn by the old partner, then such premium for goodwill shared by old partner in –
Correct
Incorrect
Question 28 of 75
28. Question
1 points
Category: Fundamentals of Accounting & Auditing
When required amount for premium for goodwill is not brought in by new partner, goodwill account is raised in books of the firm by debiting goodwill account and crediting partners capital account in-
Correct
Incorrect
Question 29 of 75
29. Question
1 points
Category: Fundamentals of Accounting & Auditing
Sometime the value of goodwill has to be inferred from the agreement of capitals and profit sharing ratio among the partners, it known as …..
Correct
Incorrect
Question 30 of 75
30. Question
1 points
Category: Fundamentals of Accounting & Auditing
Guaranteed profit is generally given to –
Correct
Incorrect
Question 31 of 75
31. Question
1 points
Category: Fundamentals of Accounting & Auditing
When a partner is given guarantee by the other partner, loss on such guarantee will be borne by –
Correct
Incorrect
Question 32 of 75
32. Question
1 points
Category: Fundamentals of Accounting & Auditing
The profits of last 5 years are Rs 60,000; Rs 67,500;Rs 52,500;Rs75,000 & Rs 60,000. find the value of goodwill, if it is calculated on average profits of last 5 years on the basis of 3 tears of purchase
Correct
Incorrect
Question 33 of 75
33. Question
1 points
Category: Fundamentals of Accounting & Auditing
The profits of last 5 years are Rs 85,000; Rs 90,000;Rs 70,000;Rs1,00,000 & Rs 80,000. find the value of goodwill, if it is calculated on average profits of last 5 years on the basis of 3 years of purchase
Correct
Incorrect
Question 34 of 75
34. Question
1 points
Category: Fundamentals of Accounting & Auditing
The profits of last 3 years are Rs 42,000; Rs 39,000 & Rs 45,000. find out goodwill of 2 years purchase
Correct
Incorrect
Question 35 of 75
35. Question
1 points
Category: Fundamentals of Accounting & Auditing
Find the goodwill of the firm using capitalization method from the following information:
Total capital employed Rs 8,00,000
Reasonable rate of return 15%
Profit for the year Rs 12,00,000
Correct
Incorrect
Question 36 of 75
36. Question
1 points
Category: Fundamentals of Accounting & Auditing
Find the goodwill from the following information:
capital employed Rs 11,00,000
Rate of normal return 10%
Future maintainable Profit Rs 2,00,000
No of year purchases-3 years
Correct
Incorrect
Question 37 of 75
37. Question
1 points
Category: Fundamentals of Accounting & Auditing
The capital of B & D are Rs 90,000 and Rs 30,000 respectively with the profit sharing ratio 3:1. The new ratio is 5:3. The goodwill is valued Rs 80,000 as on that date. Amount payable by a gaining partner to a scarifying partner is –
Correct
Incorrect
Question 38 of 75
38. Question
1 points
Category: Fundamentals of Accounting & Auditing
Find the goodwill of the firm using capitalization method from the following information.
Capital employed Rs 4,80,000
Rate of normal return-15%
Profit for the year Rs 90,000
Correct
Incorrect
Question 39 of 75
39. Question
1 points
Category: Fundamentals of Accounting & Auditing
Find the goodwill from the following information.
Capital employed Rs 8,25,000
Rate of normal return-10%
Future maintainable Profit Rs 1,50,000
Annuity factor Rs3.17
Correct
Incorrect
Question 40 of 75
40. Question
1 points
Category: Fundamentals of Accounting & Auditing
A, B & C are equal partners. D is admitted to the firm for 1/4th share. D brings Rs 20,000 capital and Rs 5,000 being half of the premium for goodwill. The value of goodwill of the firm is –
Correct
Incorrect
Question 41 of 75
41. Question
1 points
Category: Fundamentals of Accounting & Auditing
Average profit of the firm is Rs 1,20,000. The rate of capitalization is 12%. Assets and liabilities of the firm are Rs 10,00,000 & Rs 4,25,000 respectively. The value of goodwill of the firm is –
Correct
Incorrect
Question 42 of 75
42. Question
1 points
Category: Fundamentals of Accounting & Auditing
A, B &C are partners with capitals of Rs 10,000 and Rs 20,000 respectively and sharing profits equally. They admitted C as their third partner with 1/4th profits on the payment of Rs 12,000. The amount of hidden goodwill is …..
Correct
Incorrect
Question 43 of 75
43. Question
1 points
Category: Fundamentals of Accounting & Auditing
X & Y share profits & losses in the ratio 2:1. they take Z as a partner and the new profit sharing ratio become 3:2:1. Z brings Rs 4,500 as premium for goodwill. The full value of goodwill will be-
Correct
Incorrect
Question 44 of 75
44. Question
1 points
Category: Fundamentals of Accounting & Auditing
The net profit after tax of NZ & Co. for the past 3 years are as follows
Year Profit
2010-2011 20,000
2011-2012 2,61,000
2012-2013 3,12,000
Closing stock for 2011-2012 and 2012-2013 includes the defective items of Rs 22,000 and Rs 62,000 respectively which were considered as having no market value. calculate goodwill on average profit method
Correct
Incorrect
Question 45 of 75
45. Question
1 points
Category: Fundamentals of Accounting & Auditing
From the following information calculate the value of goodwill
The adjusted forecast maintainable profit is Rs40,000, capital employed is Rs 2,00,000, Normal rate of return is 15%, capitalization rate is 20%
Correct
Incorrect
Question 46 of 75
46. Question
1 points
Category: Fundamentals of Accounting & Auditing
A & B are partners sharing profits and losses in the ratio 5:3. on admission, C brings Rs 70,000 cash and Rs 48,000 against goodwill. New profit sharing ratio between A, B and C are 7:5:4. find the sacrificing ratio for A:B
Correct
Incorrect
Question 47 of 75
47. Question
1 points
Category: Fundamentals of Accounting & Auditing
Capital employed by a partnership firm is Rs 1,00,000. its average profit is Rs 20,000. normal rate of return is 15%. value of goodwill
Correct
Incorrect
Question 48 of 75
48. Question
1 points
Category: Fundamentals of Accounting & Auditing
Profit & losses for the last years are:
2011-2012 Losses Rs10,000
2012-2013 Losses Rs2,500
2013-2014 Profits Rs98,000
2014-2015 Profits Rs76,000
The average capital employed in the business is Rs 2,00,000. The rate of interest expected from capital invested is 12%.The remuneration of partners is estimated to be Rs 1,000 per month. calculate the value of goodwill on the basis of four years purchase of super profits based on the annuity of four years. Take discounting rate as 10%
Correct
Incorrect
Question 49 of 75
49. Question
1 points
Category: Fundamentals of Accounting & Auditing
Profit & losses for the last years are:
Year Profit/Loss
2001-2002 (20,000)
2002-2003 (5000)
2003-2004 1,96,000
2004-2005 1,52,000
The average capital employed in the business is Rs 4,00,000. The rate of interest expected from capital invested is 12%.The remuneration of partners is estimated to be Rs 2,000 per month.not charged in the above losses/ profit. calculate the value of goodwill on the basis of 2 years purchase of super profits based on the average of four years.
Correct
Incorrect
Question 50 of 75
50. Question
1 points
Category: Fundamentals of Accounting & Auditing
A & B are partner sharing profits and losses in the ratio of 3:2. C is coming as a new partner for 1/3rd share.calculate new profit sharing ratio among A,B &C
Correct
Incorrect
Question 51 of 75
51. Question
1 points
Category: Fundamentals of Accounting & Auditing
X&Y are partners sharing profits in the ratio 5:3. They admitted Z for a 1/5th share of profits, for which he paid Rs 1,20,000 against capital and Rs60,000 against goodwill. find the capital balances for each partner taking Z’s capital as base capital
Correct
Incorrect
Question 52 of 75
52. Question
1 points
Category: Fundamentals of Accounting & Auditing
H & M are partners sharing profits & losses in the ratio 2:5. They admitted K as a new partner who will get 1/6th share of profits of the firm. calculate new profit sharing ratio among H,M&K
Correct
Incorrect
Question 53 of 75
53. Question
1 points
Category: Fundamentals of Accounting & Auditing
R &S are partners sharing profits& losses in the ratio 3:2. They admitted Tas new partner calculate the new profit sharing ratio. if T purchases 1/10th share from R
Correct
Incorrect
Question 54 of 75
54. Question
1 points
Category: Fundamentals of Accounting & Auditing
R &S are partners sharing profits& losses in the ratio 3:2. They admitted T as new partner calculate the new profit sharing ratio. if R & S agree to sacrifice 1/10th share to T in the ratio of 2:3.
Correct
Incorrect
Question 55 of 75
55. Question
1 points
Category: Fundamentals of Accounting & Auditing
R &S are partners sharing profits & losses in the ratio 3:2. They admitted T as new partner calculate the new profit sharing ratio. if T simply gets 1/10th share of profit
Correct
Incorrect
Question 56 of 75
56. Question
1 points
Category: Fundamentals of Accounting & Auditing
A & B are equal partners. They admitted C & D as partner with 1/5th and 1/6th share respectively. what is the profit sharing ratio of all the partners?
Correct
Incorrect
Question 57 of 75
57. Question
1 points
Category: Fundamentals of Accounting & Auditing
N & Z are partners sharing profits& losses in the ratio 5:3. They admitted S and agreed to give 3/10th of the profit. what is the new ratio after S’s admission?
Correct
Incorrect
Question 58 of 75
58. Question
1 points
Category: Fundamentals of Accounting & Auditing
A & B are partners sharing in the ratio 5:3. They admitted C giving him 3/10th share of profit .if C acquires 1/5 from A and 1/10 from B , new profit sharing ratio will be
Correct
Incorrect
Question 59 of 75
59. Question
1 points
Category: Fundamentals of Accounting & Auditing
A, B & C are partners sharing profits & losses in the ratio 6:3:3, They agreed to take D into partnership for 1/8th share of the profits/. calculate the new profit sharing ratio.
Correct
Incorrect
Question 60 of 75
60. Question
1 points
Category: Fundamentals of Accounting & Auditing
A & B are partners sharing profits & losses in the ratio 3:2. Cis coming as new partner for 1/3rd share .calculate scarifying ratio between A and B
Correct
Incorrect
Question 61 of 75
61. Question
1 points
Category: Fundamentals of Accounting & Auditing
A & B are partners sharing profits & losses in the ratio 5:3. C is coming as new partner for 1/6th share .calculate scarifying ratio between A and B
Correct
Incorrect
Question 62 of 75
62. Question
1 points
Category: Fundamentals of Accounting & Auditing
X & Y are partners sharing profits & losses in the ratio 5:3. Z is coming as new partner. New profit sharing ratio among X, Y &Z will be 3:2:1 .calculate scarifying ratio between X and Y.
Correct
Incorrect
Question 63 of 75
63. Question
1 points
Category: Fundamentals of Accounting & Auditing
X & Y are partners sharing in the ratio 3:1. they admit Z as partner who pays Rs 4,000 as goodwill the new sharing profit ratio is 2:1:1 among X, Y &Z respectively .the amount of goodwill be credited to –
Correct
Incorrect
Question 64 of 75
64. Question
1 points
Category: Fundamentals of Accounting & Auditing
P & Q are partners for 11:7. Z is coming as new partner. New profit sharing ratio among X, Y &Z will be 11:9:5 .calculate scarifying ratio between X and Y.
Correct
Incorrect
Question 65 of 75
65. Question
1 points
Category: Fundamentals of Accounting & Auditing
Y & Z are partners sharing profits & losses equally. They admit S as a partner and decided to share profits equally. Goodwill is valued at Rs 60,000 but is to be immediately written off. the effect of this on Y’s capital would be to-
Correct
Incorrect
Question 66 of 75
66. Question
1 points
Category: Fundamentals of Accounting & Auditing
N & D are partners sharing profits & losses equally. they agreed to take G as a partner. New profit sharing ratio among N,D &G will be 4:2:3 .calculate scarifying ratio
Correct
Incorrect
Question 67 of 75
67. Question
1 points
Category: Fundamentals of Accounting & Auditing
A and B are partners sharing profits & losses in the ratio 3:2. they take C as a partner 1/4th share. calculate future profit sharing ratio.
Correct
Incorrect
Question 68 of 75
68. Question
1 points
Category: Fundamentals of Accounting & Auditing
A & B are equal partners. they take C as a third partner for 1/3rd profit. Sacrificing ratio is
Correct
Incorrect
Question 69 of 75
69. Question
1 points
Category: Fundamentals of Accounting & Auditing
N &Z are partners sharing profits & losses in the ratio 7:5. they take S into the partnership. S is to get 1/6th share which he gets 1/24th form N & 1/8th from Z.Scarifying ratio =?
Correct
Incorrect
Question 70 of 75
70. Question
1 points
Category: Fundamentals of Accounting & Auditing
A, B&C are equal partners. they decided to take D as a partner.The new profit sharing ratio is 3:3:2:2. Sacrificing ratio is –
Correct
Incorrect
Question 71 of 75
71. Question
1 points
Category: Fundamentals of Accounting & Auditing
A, B& C are equal partners. D is admitted to the firm for 1/4th share.D brings Rs 20,000 capital and Rs 5,000 being half of the premium for goodwill. the value of goodwill of the firm is –
Correct
Incorrect
Question 72 of 75
72. Question
1 points
Category: Fundamentals of Accounting & Auditing
A, B& C are partners with capitals of Rs 14,000 and Rs 28,000 respectively and sharing equally. C is admitted as 3rd partner 1/4th profit of the firm on payment of Rs16,800.the amount of the hidden goodwill is –
Correct
Incorrect
Question 73 of 75
73. Question
1 points
Category: Fundamentals of Accounting & Auditing
X & Y share profits & losses in the ratio of 2:1. they take Z as a partner and the new profit sharing ratio becomes 3:2:1. Z brings Rsw 4,500 as premium for goodwill. the full value of goodwill will be –
Correct
Incorrect
Question 74 of 75
74. Question
1 points
Category: Fundamentals of Accounting & Auditing
A& B are partners sharing profits and losses in the ratio of 7:3. C is a new partner. A sacrificed 1/7th share of his profit and B sacrificed 1/3rd of his share in favour of C.the new profit sharing ratio will be-
Correct
Incorrect
Question 75 of 75
75. Question
1 points
Category: Fundamentals of Accounting & Auditing
A & B share profit and losses equally. they admitted C as an equal partner and assets were revalued as follows; Stock at Rs20,000(book value Rs12,000);Machinery at Rs60,000(book value Rs 55,000).find profit/loss on revaluation to be shared among A & B.
Correct
Incorrect
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