12th Accountancy Monthly Test -4 ( Goodwill in partnership accounts )

St. Britto Hr. Sec. School - Madurai

12th Accountancy Monthly Test -4 ( Goodwill in partnership accounts )-Aug 2020

Time : 2.30 Hours

Part - A

Generic 2 - Answer All Question

The profits and losses of a firm for the last four years were as follows:
2015: Rs.15,000; 2016: Rs.17,000; 2017: Rs.6,000 (Loss); 2018: Rs.14,000
You are required to calculate the amount of goodwill on the basis of 5 years purchase of average profits of the last 4 years.

The following are the profits of a firm in the last five years:
2014: Rs.4,000; 2015: Rs.3,000; 2016: Rs.5,000; 2017: Rs.4,500 and 2018: Rs.3,500
Calculate the value of goodwill at 3 years purchase of average profits of five years.

A partnership firm has decided to value its goodwill for the purpose of settling a retiring partner. The profits of that firm for the last four years were as follows:
2015: Rs.40,000; 2016: Rs.50,000; 2017: Rs.48,000 and 2018: Rs.46,000
The business was looked after by a partner. No remuneration was paid to him. The fair remuneration of the partner valued at comes to Rs.6,000 per annum.
Find out the value of goodwill, if it is valued on the basis of three years purchase of the average profits of the last four years

Part - B

Generic 3 - Answer All Question

For the purpose of admitting a new partner, a firm has decided to value its goodwill at 3 years purchase of the average profit of the last 4 years using weighted average method. Profits of the past 4 years and the respective weights are as follows:

Particulars 2015 2016 2017 2018

Profit (Rs.) 20,000 22,000 24,000 28,000

Weight 1 2 3 4

Compute the value of goodwill.

Particulars	2015	2016	2017	2018
Profit (Rs.)	20,000	22,000	24,000	28,000
Weight	1	2	3	4

From the following information relating to Arul enterprises, calculate the value of goodwill on the basis of 2 years purchase of the average profits of 3 years.
(a) Profits for the years ending 31st December 2016, 2017 and 2018 were Rs.46,000, Rs.44,000 and Rs.50,000 respectively.
(b) A non-recurring income of Rs.5,000 is included in the profits of the year 2016.
(c) The closing stock of the year 2017 was overvalued by Rs.10,000.

Calculate the value of goodwill at 2 years purchase of average profit when average profit is Rs.15,000

Part - C

Generic 5 - Answer All Question

From the following information relating to Sridevi enterprises, calculate the value of goodwill on the basis of 4 years purchase of the average profits of 3 years.
(a) Profits for the years ending 31st December 2016, 2017 and 2018 were Rs.1,75,000,
Rs.1,50,000 and Rs.2,00,000 respectively.
(b) A non-recurring income of Rs.45,000 is included in the profits of the year 2016.
(c) The closing stock of the year 2017 was overvalued by Rs.30,000.

A partnership firm earned net profits during the last three years as follows:
2016 : Rs.20,000; 2017 : Rs.17,000 and 2018 : Rs.23,000
The capital investment of the firm throughout the above mentioned period has been Rs.80,000. Having regard to the risk involved, 15% is considered to be a fair return on capital employed
in the business. Calculate the value of goodwill on the basis of 2 years purchase of super profit.

The following are the profits of a firm in the last five years:
2014: Rs.10,000; 2015: Rs.11,000; 2016: Rs.12,000; 2017: Rs.13,000 and 2018: Rs.14,000
Calculate the value of goodwill at 2 years purchase of average profit of five years.

What is normal rate of return?

What is super profit?

What is acquired goodwill?

State any two circumstances under which goodwill of a partnership firm is valued.

Comment

Add Comment

InstaQB

Institutions

12th Standard English Medium

12th Standard Tamil Medium

11th Standard English Medium

11th Standard Tamil Medium

10th Standard English Medium

9th Standard English Medium

8th Standard English Medium

7th Standard English Medium

Class XII

Class XI

12Th Standard

11Th Standard

10Th Standard

9Th Standard

12th Accountancy Monthly Test -4 ( Goodwill in partnership accounts )

St. Britto Hr. Sec. School - Madurai

12th Accountancy Monthly Test -4 ( Goodwill in partnership accounts )-Aug 2020

Part - A

Generic 2 - Answer All Question

The profits and losses of a firm for the last four years were as follows: 2015: Rs.15,000; 2016: Rs.17,000; 2017: Rs.6,000 (Loss); 2018: Rs.14,000 You are required to calculate the amount of goodwill on the basis of 5 years purchase of average profits of the last 4 years.

The following are the profits of a firm in the last five years: 2014: Rs.4,000; 2015: Rs.3,000; 2016: Rs.5,000; 2017: Rs.4,500 and 2018: Rs.3,500 Calculate the value of goodwill at 3 years purchase of average profits of five years.

Part - B

Generic 3 - Answer All Question

Calculate the value of goodwill at 2 years purchase of average profit when average profit is Rs.15,000

Part - C

Generic 5 - Answer All Question

The following are the profits of a firm in the last five years: 2014: Rs.10,000; 2015: Rs.11,000; 2016: Rs.12,000; 2017: Rs.13,000 and 2018: Rs.14,000 Calculate the value of goodwill at 2 years purchase of average profit of five years.

What is normal rate of return?

What is super profit?

What is acquired goodwill?

State any two circumstances under which goodwill of a partnership firm is valued.

Comment

Other Study material

12th Accountancy Monthly Test -1 ( Financial State

12th Accountancy Monthly Test -2 ( Financial State

12th Accountancy Weekly Test - 3 ( Financial State

12th Accountancy Weekly Test - 4 ( Financial State

12th Accountancy Weekly Test -1(Financial Statemen

12th Accountancy Weekly Test -2 ( Financial Statem

12th Accountancy Weekly Test - 4 ( Computerised Ac

12th Accountancy Monthly Test -3 ( Ratio Analysis

12th Accountancy Monthly Test -2 ( Ratio Analysis

12th Accountancy Monthly Test -1 ( Ratio Analysis

12th Accountancy Weekly Test - 4 ( Ratio Analysis

12th Accountancy Weekly Test - 3 ( Ratio Analysis

12th Accountancy Weekly Test -2 ( Ratio Analysis )

12th Accountancy Weekly Test -1 ( Ratio Analysis )

12th Accountancy Monthly Test -4 ( Financial State

Tamilnadu Stateboardszs - Class

The profits and losses of a firm for the last four years were as follows:
2015: Rs.15,000; 2016: Rs.17,000; 2017: Rs.6,000 (Loss); 2018: Rs.14,000
You are required to calculate the amount of goodwill on the basis of 5 years purchase of average profits of the last 4 years.

The following are the profits of a firm in the last five years:
2014: Rs.4,000; 2015: Rs.3,000; 2016: Rs.5,000; 2017: Rs.4,500 and 2018: Rs.3,500
Calculate the value of goodwill at 3 years purchase of average profits of five years.

The following are the profits of a firm in the last five years:
2014: Rs.10,000; 2015: Rs.11,000; 2016: Rs.12,000; 2017: Rs.13,000 and 2018: Rs.14,000
Calculate the value of goodwill at 2 years purchase of average profit of five years.