Under the capitalisation method, the formula for calculating the goodwill is Sol:

Related MCQs

• The total capital employed in the company is ₹8,00,000 a reasonable rate of return is 15% and the profit of the year is 12,00,000. The value of goodwill of the company as per the capitalisation method will be
• Weighted average method of calculating goodwill is used when Sol:
• Weighted average method of calculating goodwill is used when Sol:
• When there is no Goodwill Account in the books and goodwill is raised,…………….account will be debited Sol:
• A firm earns ₹1,00,000. The normal rate of return is 10%. The assets of the company amounted to ₹11,00,000 and liabilities to ₹1,00,000. Value of goodwill by the capitalisation of average actual profit will be
• Goodwill is nothing more than probability that the old customer will resort to the old place. This definition of goodwill was given by:
• Goodwill is to be calculated at one and half year’ purchase of average profit of last 5 years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and suffered losses of ₹ 2,000 and ₹5,000 in last 2 years. The amount of goodwill will be
• Goodwill is defined as Sol:
• A firm’s goodwill is not affected by Sol:
• The amount of goodwill is paid by new partner : Sol: