CUET DAILY PRACTICE QUESTIONS

A firm earns Rs. 65,000 as its average profits. The usual rate of earning is 10%. The total assets of the firm amounted to Rs. 6,80,000 and liabilities are Rs.1,80,000. Calculate the value of goodwill by super profit method if purchase years are 3.

• (a)Rs. 45,000

• (b) 40,000

• (c) 1,35,000

• (d) None of the above

Calculate the Goodwill by average profit of last four year's profits and purchase years are 2.

2021= 42,000,2022= 18,000, 2023=15,000(loss),2024= 35,000

• (a)Rs. 40,000

• (b) 30,000

• (c) 45,000

• (d) None of the above

Business showed that the capital employed on 1-04-2017, was Rs. 4,50,000 and the profits for the last five years were as follows: 2017- Rs. 40,000. 2018 -Rs. 50,000. 2019- Rs. 60,000. 2020 -Rs. 70,000. 2021 -Rs. 80,000. You are required to find out the value of goodwill, based on three year's purchase of the super profit of the business given that the normal rate of return is 10%.

• (a)Rs. 45000

• (b) 90,000

• (c) 60,000

• (d) None of the above

The average profits expected of a firm in future are Rs.60,000 per year and capital invested in the business by the firm is Rs.3,50,000. The rate of interest expected from capital invested in this class of business is 12%. . You are required to find out the super profit.

• (a)Rs.18000

• (b) 28,000

• (c) 42,000

• (d) None of the above

Statement[I]:At the time of reconstitution of firm, assets are revalued and liabilities are reassessed.

Statement[II]: the changed in the value of assets and liabilities belongs to the period prior to reconstitution And any gain or loss on revaluation is shared in the old ratio by the partners.

Options:

• (a) Both the statements are true

• (b) Both the statements are false

• (c)      Statement I is true, Statement II is false

• (d)      Statement I is false, Statement II is true

X, Y and Z are partners sharing profits in the ratio of 4:3:2. The partners have decided to share future profits in the ratio of 3:1:1. Find out the gainer partner.

 

• (a) Y is gainer

• (b) X is gainer

• (c) Y and Z are gainer

• (d) Z is gainer

According to AS 26, which goodwill is recorded in the books :

i) purchased goodwill,

ii) self generated goodwill

• (a) both (i) and (ii)

•  (b) self-generated goodwill

•  (c) purchased goodwill

• (d) None of the above

Revaluation account is prepared on the reconstitution of---------, because present value of assets and liabilities may be different from their Book value.

• (a)Reconstitution of firm

• (b)Reconstitution of partnership

• (c)Both (a) and (b)

• (d)None of the above

Re-assessment of liabilities means:

• (a)Only increase in the values of liabilities.

• (b)Change in the values of liabilities.

• (c)Only decrease in the values of liabilities.

• (d)None of the above.

AK, BK and CK are sharing profits in the ratio of 2:1:1. They have decided to share future profits in the ratio of 3:2:1. Find out the gainer partner.

• (a)Both AK is the gainer partner

• (b)CK is the gainer partner.

• (c)BK is the gainer partner.

• (d) None of the above