Case Based MCQs of Goodwill Accountancy Class 12 with Asnwers
Case Based MCQs of Goodwill Accountancy Class 12 with Asnwers
Let’s Practice
A, B and C were partners sharing profits in the ratio of 2 : 2 : 1, decided to share future profits in 1 : 2 : 3. On this date firm had assets of ₹ 3,80,000 including cash of ₹ 20,000. The partner’s capital accounts showed a balance of ₹ 3,00,000 and reserves constituted the rest. Normal rate of return is 10% and goodwill of the firm is valued at ₹ 75,000 at 3 year’s purchase of super profits. On the basis of the above information, answer the following:
(i) Normal Profit of the firm is
(A) ₹ 30,000
(B) ₹ 38,000
(C) ₹ 36,000
(D) ₹ 40,000
Ans- (B)
(ii) Super Profit will be:
(A) ₹ 2,25,000
(B) ₹ 13,000
(C) ₹ 25,000
(D) ₹ 75,000
Ans – (C)
(iii) Average Profit will be:
(A) ₹ 13,000
(B) ₹ 38,000
(C) ₹ 25,000
(D) ₹ 63,000
Ans – (D)
(iv) For adjustment of goodwill:
(A) Dr. C by ₹ 22,500; Cr. A by ₹ 15,000; Cr. B by ₹ 7,500
(B) Dr. C by ₹ 22,500; Cr. A by ₹ 5,000; Cr. B by ₹ 17,500
(C) Cr. C by ₹ 22,500; Dr. A by ₹ 17,500; Dr. B by ₹ 5,000
(D) Dr. C by ₹ 22,500; Cr. A by ₹ 17,500; Cr. B by ₹ 5,000
Ans – (D)
P, Q and R are partners running a departmental store and sharing profits equally. R started a new business of his own and since R was unable to devote any time to the existing business, they decided that R will get 1/5th in future profits. They also decided to make adjustment for goodwill on the basis of 3 years purchase of super profits of last 5 years. Capital investment of the firm is ₹ 15,00,000 and a fair return on capital is 12%. Profits of the last 5 years were as follows:
| Year | Profit (₹) |
| Profit for the year ended 31st March 2020 | 1,60,000 |
| Profit for the year ended 31st March 2021 | (3,00,000) |
| Profit for the year ended 31st March 2022 | 4,60,000 (including an abnormal gain of ₹ 60,000) |
| Profit for the year ended 31st March 2023 | 4,00,000 (after charging an abnormal loss of ₹ 40,000) |
| Profit for the year ended 31st March 2024 | 3,00,000 |
On the basis of above information, answer the following:
(i) Average maintainable profit will be:
(A) ₹ 10,00,000
(B) ₹ 3,20,000
(C) ₹ 2,00,000
(D) ₹ 2,08,000
Ans- (C)
(ii) Normal Profit of the firm is:
(A) ₹ 1,20,000
(B) ₹ 3,00,000
(C) ₹ 3,20,000
(D) ₹ 1,80,000
Ans – (D)
(iii) Value of goodwill of the firm will be:
(A) ₹ 60,000
(B) ₹ 84,000
(C) ₹ 80,000
(D) ₹ 20,000
Ans – (A)
(iv) For adjustment of goodwill:
(A) Dr. P ₹ 4,000; Dr. Q ₹ 4,000; Cr. R ₹ 8,000
(B) Cr. P ₹ 4,000; Cr. Q ₹ 4,000; Dr. R ₹ 8,000
(C) Dr. P ₹ 10,000; Dr. Q ₹ 10,000; Cr. R ₹ 20,000
(D) Dr. P ₹ 6,000; Dr. Q ₹ 6,000; Cr. R ₹ 12,000
Ans – (A)
