Matching Type MCQs of Goodwill class 12 Accountancy

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Looking for important matching type MCQs of Goodwill chapter with answers and solutions of Accountancy class 12 CBSE Board, ISC, and State Board.

Matching Type Multiple Choice Questions with answers of Goodwill chapter of Accountnacy class 12

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Match the Columns.

Column – IColumn – II
A – Intangible Asseti) Method of Goodwill valuation
B – Nature of Businessii) Feature of Goodwill
C – Super Profitiii) Factor affecting Goodwill
D – Self-Generatediv) Type of Goodwill

Options

a) A – iii), B – ii), C – iv), D – i)
b) A – ii), B – iii), C – iv), D – i)
c) A – iii), B – ii), C – i), D – iv)
d) A – ii), B – iii), C – i),D – iv)

Ans – d)

Capital Employed in a business is ₹1,00,000. The normal rate of return on capital employed is 15%. During 2020, the firm earned a profit of ₹24,000. The company calcualtes goodwill on basis of 3 years purchase of super profit. On the basis of information, match the following.

Column – IColumn – II
A – Normal Profitsi) ₹27,000
B – Actual Profitsii) ₹9,000
C – Super Profitsiii) ₹24,000
D – Goodwilliv) ₹15,000

Options

a) A – i), B – ii), C – iii), D – iv)
b) A – i), B – ii), C – iv), D – ii)
c) A – iv), B – iii), C – ii), D – i)
d) A – i), B – iv), C – iii), D – ii)

Ans – c)

Identify the factors affecting the value of goodwill:

Column – IColumn – II
i) Stable DemandA – Favourable location
ii) Increased number of customers over a period of timeB – Longevity of business
C – Goods of Daily use
D – Risk involved

Options

a) i) – C, ii) – A
b) i) – A, ii) – B
c) i) – C, ii) – D
d) i) – D, ii) – A

Ans – a)

Identify weight for the past years while calculating goodwill by weighted average profit:

Column – IColumn – II
i) 2017A – 1
ii) 2019B – 2
iii) 2020C – 3
iv) 2018D – 4
E – 5

Options

a) i) – A, ii) – C, iii) – D, iv) – B
b) i) – B, ii) – A, iii) – C, iv) – D
c) i) – C, ii) – B, iii) – A, iv) – D
d) i) – D, ii) – A, iii) – B, iv) – C

Ans – a)

Match the following items:

Column – AColumn – B
i) Goodwill which is acquired by making a paymentA – Inherent Goodwill
ii) Goodwill which arises from a favourable locationB – Purchased Goodwill
iii) Goodwill which arises due to efficiency of management

Options

a) i) – B, ii) – A, iii) – A
b) i) – A, ii) – B, iii) – B

Ans – a)

Match the following items:-

Column – IColumn – II
i) – If goodwill is valued at ₹1,20,000 at 4 years purchase of super profit; normal return is 10% and average profits are ₹50,000, capital employed will beA – ₹8,00,000
B – ₹2,00,000
C – ₹5,00,000

Options

a) i) – B
b) i) – A
c) i) – C

Ans – a)

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