Table of Contents

Concept of Goodwill MCQs with Solved Answers 12 ISC

Question 1.

Rakesh and Somendra are partners in a firm sharing profits and losses in the ratio of 3:2. They admit Sarthak on 1st April, 2021 for 15⁄ share in the profits of the firm. At the time of reconstitution of a partnership firm, goodwill was valued at two years’ purchase of the average profits of the preceding four years which were as follows:
2017-18 Profit ₹ 2,10,000 (after debiting loss of stock by fire ₹ 45,000)
2018-19 Profit ₹ 1,50,000 (including insurance claim of ₹ 15,000)
2019-20 Loss ₹ 1,20,000 (after debiting voluntary retirement compensation paid ₹ 60,000)
2020-21 Profit ₹ 1,80,000 (excluding insurance premium of ₹ 30,000 on insurance of assets)

(i) The average profits of the firm from the year 2017-18 to the year 2020-21 were:
(a) ₹ 90,000
(b) ₹ 1,80,000
(c) ₹ 1,12,500
(d) ₹ 1,20,000
(ii) The value of goodwill of the firm on Sarthak’s admission was:
(a) ₹ 1,80,000
(b) ₹ 2,40,000
(c) ₹ 2,25,000
(d) ₹ 3,60,000

(iii) Sarthak share of goodwill will be:
(a) ₹ 1,20,000
(b) ₹ 84,000
(c) ₹ 80,000
(d) ₹ 48,000
(iv) Sarthak is unable to bring in cash his share of goodwill. The account to be debited
to record his goodwill compensation will be:
(a) Sarthak’s Capital A/c
(b) Sarthak’s Current A/c
(c) Premium for Goodwill A/c
(d) Old Partners’ Capital A/c

(v) The normal profits of the firm for the year 2017-18 :
(a) ₹ 2,10,000
(b) ₹ 1,65,000
(c) ₹ 2,55,000
(d) None of these

Answer- 1

(i) (d) ₹ 1,20,000

(2,55,000+1,35,000-60,000+1,50,000)/4= 1,20,000

(ii) (b) ₹ 2,40,000

1,20,000X2= 2,40,000

(iii)(d) ₹ 48,000

2,40,000/5= 48,000

(iv)(b) Sarthak’s Current A/c

(v)(c) ₹ 2,55,000

2,10,000+45,000= 2,55,000

Concept of Goodwill mcqs with Solved answers 12 ISC(Question 2)

ACCOUNTANCY Issue Of Shares MCQs With Solved Answers

Question 2.

At the time of reconstitution of a partnership firm, goodwill was valued on the basis of three years’ purchase of the weighted average profits of the last four years. The profits and losses of the receding four years were:

Year Profit Weights

2013-14 ₹ 22,000 1

2014-15 ₹ 27,000 2

2015-16 ₹ 32,000 3

2016-17 ₹ 35,000 4

While valuing the goodwill of the firm it was found that the opening stock of the year 2015-16 was undervalued by ₹ 2,000.

(i) The normal profits of the firm from the year 2014-15 :
(a) ₹ 27,000
(b) ₹ 25,000
(c) ₹ 30,000
(d) ₹ 32,000
(ii) The normal profits of the firm from the year 2015-16 :
(a) ₹ 27,000
(b) ₹ 25,000
(c) ₹ 30,000
(d) ₹ 32,000
(iii) Amount of total product will be:
(a) ₹ 3,02,000
(b) ₹ 3,01,000
(c) ₹ 3,00,000
(d) ₹ none of these
(iv) Amount of weighted average profit will be:
(a) ₹ 30,100
(b) ₹ 30,200
(c) ₹ 30,000
(d) None of these
(v) The value of goodwill the time of reconstitution of firm:
(a) ₹ 90,600
(b) ₹ 90,300
(c) ₹ 90,000
(d) None of these

Answer- 2

(i) (b) ₹ 25,000

(ii) (c) ₹ 30,000

(iii)(a) ₹ 3,02,000

(iv)(b) ₹ 30,200

(v)(a) ₹ 90,600

Concept of Goodwill mcqs with Solved answers 12 ISC(Question 3)

ISC COMMERCE Principles of Management MCQs with Solved Answers

Question 3.

Following Information is given –
(i) Capital Employed is ₹ 10,00,000
(ii) Net Profit/(Loss) of the firm for the last 3 years ender are
31st March 2019- ₹2,00,000
31st March 2018- ₹1,80,000
31st March 2017- ₹1,60,000
iii) Normal Rate of return in similar business is 10 %.

(i) What will be the value of goodwill when valuation of goodwill on the basis of 2 years purchase of Average Profit:
(a) ₹ 3,60,000
(b) ₹ 5,40,000
(c) ₹ 4,40,000
(d) None of these
(ii) What will be the value of goodwill when valuation of goodwill on the basis of 3 years purchase of Super Profit:
(a) ₹ 2,40,000
(b) ₹ 5,40,000
(c) ₹ 4,40,000
(d) None of these
(iii) What will be the value of goodwill when valuation of goodwill On the basis of Capitalisation of Super Profit:
(a) ₹ 7,00,000
(b) ₹ 18,00,000
(c) ₹ 8,00,000
(d) None of these

(iv) What will be the value of goodwill when valuation of goodwill On the basis of Capitalisation of Average Profit:
(a) ₹ 7,00,000
(b) ₹ 8,00,000
(c) ₹ 18,00,000
(d) None of these

(v) The average profits of the firm for last three years were:
(a) ₹ 5,40,000
(b) ₹ 1,80,000
(c) ₹ 2,40,000
(d) ₹ 1,20,000

Answer- 3

(i) (a) ₹ 3,60,000

(ii) (a) ₹ 2,40,000

(iii)(c) ₹ 8,00,000

(iv)(b) ₹ 8,00,000

(v)(b) ₹ 1,80,000

Concept of Goodwill mcqs with Solved answers 12 ISC (Question 4)

ISC Commerce 12 Planning MCQs with Solved Answers

Question 4.

On April 1, 2018, a firm has assets of ₹ 1,00,000 excluding stock of
₹ 20,000 . The current liabilities were ₹ 10,000 and the balance constituted partner’s capital Accounts. If the normal rate of return is 8 %, the Goodwill of the firm is valued at ₹ 60.000 at four years purchase of super profit.

(i). Amount of capital employed of the firm…..

(a) ₹ 1,10,000
(b) ₹ 8,800
(c) ₹ 15,000
(d) ₹ 23,800

(ii). Amount of the normal profits of the firm…..

(a) ₹ 1,10,000
(b) ₹ 8,800
(c) ₹ 15,000
(d) ₹ 23,800

(iii). Amount of the super profits of the firm…..

(a) ₹ 1,10,000
(b) ₹ 8,800
(c) ₹ 15,000
(d) ₹ 23,800

(iii). Amount of the actual profits of the firm…..

(a) ₹ 1,10,000
(b) ₹ 8,800
(c) ₹ 15,000
(d) ₹ 23,800

Answer- 4

(i) (a) ₹ 1,10,000

(ii) (b) ₹ 8,800

(iii)(c) ₹ 15,000

(iv)(d) ₹ 23,800

ISC Commerce 12 Business Environment MCQs with Solved Answers

Question 5.

Weighted average method of calculating goodwill be used. When goodwill be used…….
(a) When profits are fluctuating
(b) When profits show a trend
(c) When Profits are not equal
(d) None of the above

Answer- 5 (b) When profits show a trend

Question 6.

Which of the following is not true in relation to Goodwill……
(a) It is an Intangible Asset
(b) It is a Factious Asset
(c) It has a realisable value
(d) All of these

Answer- 6 (b) It is a Factious Asset