Page 1 - HA Objective
P. 1

1)Goodwill is a -


                           (a)  Fixed tangible asset.               (b)  Fixed intangible asset.


                           (c)  Current asset.                      (d)  None of the above.


               2)Goodwill is valued at the time of-


                           (a)  Change in PSR.                      (b)  Admission of a partner.



                           (c)  Retirement and death of a partner. (d)  All of these.

               3)Super profit is equal to :


                           (a)  Average profit- normal profit       (b)  Normal profit- average profit.

                           (c)  Average profit + Nornam profit.     (d)  None of these.









               VSA :-

                   1. What is Super profit?

                   2. How super profit is calculated?
                   3. Distinguish between profit and super profit.
                   4. Enumerate two main steps involved in valuing the goodwill

                       according  to Super Profit Method?


                   5. If the capital of a firm is Rs. 5,00,000 and profit for 2019 is
                       Rs. 40,000, what will be super profit if rate of return is 7%
                       on capital employed?
                   6. Distinguish between avg. profit method and super profit

                       method.(any 1 point).
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