Dear Students,
S.S. Sahoo’s Accounts Tuition Classes is going to start a Crash Course for CUET UG coaching for Commerce Domain subjects from 1st April 2026. The first 10 enrollments will get a 10% discount on the fee. Enroll Now!
S.S. Sahoo has 34 years of experience in teaching Commerce students from classes 11th, 12th, B.Com, and professional courses like CA, CMA, and CS.
We are providing CUET UG Coaching for Commerce domain subjects: Accounts, Business Studies, Economics, and Mathematics.
Our students have taken admission in reputed colleges of Delhi University. Feel free to call us at 9899808330.
For Question No. 11-20 click here
QUESTION – 21. If Average Capital Employed in a firm is 9,00,000; Average Profits 2,80,000 and Normal rate of return is 20%, then value of goodwill as per capitalization of super profits is: (28th May, 2023)
(a) 1,24,000
(b) 5,00,000
(c) 45,00,000
(d) 3,36,000
QUESTION – 22. Out of the following when will the need for valuation of goodwill does not arise: (29th May, 2023)
(a) Admission of a partner
(b) Retirement of a partner
(c) Dissolution of partnership firm
(d) Death of partners
QUESTION – 23. Goodwill of the firm was valued at 6,00,000 being valued at 3 years purchase of super profits. If Normal rate of return was 10% and actual profits amounted to 3,50,000. Determine Capital Employed. 30th May, 2023
(a) 15,00,000
(b) 35,00,000
(c) 60,00,000
(d) 20,00,000
QUESTION – 24.
| Liabilities | Assets | |
| Debtor | 2,10,000 | |
| (—) Provision for Doubtful Debts | 18,000 |
Additional Information:
(i) Bad debts amounted to 10,000
(ii) Create provision for doubtful debts @10% of debtors.
Based on the given details Revaluation Account will be: 30th May, 2023
(a) Debited by 22,000
(b) Credited by 22,000
(c) Debited by 12,000
(d) Credited by 12,000
QUESTION – 25. Goodwill of the firm was valued at 7,20,000 being valued on the basis of 4 years purchase of super profit of the firm. Capital employed of the firm was 25,00,000 and firm made profit of 4,80,000. Determine normal rate of return. 31st May, 2023
(a) 19.2%
(b) 12%
(c) 7.2%
(d) 10%
QUESTION – 26. Identify the factor that does not affect the value of goodwill of a partnership firm. 31st May, 2023
(a) Change in profit sharing ratio of partners
(b) Efficiency of management
(c) Market situation
(d) Location
QUESTION – 27. The profits of a firm for 5 years are as follows: 2nd June, 2023
| Year | Profits (₹) |
| 2012-13 | 20,000 |
| 2013-14 | 24,000 |
| 2014-15 | 30,000 |
| 2015-16 | 25,000 |
| 2016-17 | 18,000 |
Calculate Goodwill on the basis of 3 years purchase of weighted average profits of last five years based on weights 1, 2, 3, 4 and 5 respectively.
(a) 68,200
(b) 69,600
(c) 64,800
(d) 66,000
Match Type Questions
QUESTION – 28. Match List – I with List – II.
| LIST – I | LIST – II |
| (A) Normal Rate of Return | (I) Total Assets – Outside Liabilities |
| (B) Number of years purchase | (II) Usual return on capital employed |
| (C) Capital Employed | (III) Return over and above usual return in similar business |
| (D) Super Profit | (IV) Expected period for which returns are anticipated to accrue |
Choose the correct answer from the options given below: 7th June, 2023
(a) (A)- (I), (B)- (II), (C)- (IV), (D)- (III)
(b) (A)- (III), (B)- (I), (C)- (II), (D)- (IV)
(c) (A)- (II), (B)- (IV), (C)- (I), (D)- (III)
(d) (A)- (IV), (B)- (III), (C)- (II), (D)- (I)
QUESTION – 29. Match List – I with List – II.
| LIST – I | LIST – II |
| (A) Increase in Furniture Value | (I) Credit side of Partner’s Capital A/c |
| (B) Depreciation on Machinery | (II) Debt side of Partner’s Capital A/c |
| (C) General Reserve | (III) Credit side of Revaluation A/c |
| (D) Goodwill appearing in Books | (IV) Debt side of Revaluation A/c |
Choose the correct answer from the options given below: 11th June, 2023
(a) (A)- (IV), (B)- (III), (C)- (II), (D)- (I)
(b) (A)- (III), (B)- (IV), (C)- (I), (D)- (II)
(c) (A)- (III), (B)- (IV), (C)- (II), (D)- (I)
(d) (A)- (IV), (B)- (III), (C)- (I), (D)- (II)
QUESTION – 30. Match List I with List II.
| LIST – I | LIST – II |
| A. Sacrificing Ratio | I. New Ratio – Old Ratio |
| B. New Ratio | II. Old Ratio – New Ratio |
| C. Gaining Ratio | III. Old ratio + Gaining Ratio |
| D. Value of goodwill | IV. Average profit × No. of years purchase |
Choose the correct answer from the options given below: 16th June, 2023
(a) A- II, B- III, C- I, D- IV
(b) A- II, B- I, C- II, D- IV
(d) A- I, B- II, C- II, D- IV
SOLUTION – 21. Ans. (b)
Sol. Average Profit = 2,80,000
Average Capital Employed = 9,00,000
Normal Profit = 20% of 9,00,000 = 9,00,000 × 20% = 1,80,000
Super Profit = Average Profit – Normal Profit = 2,80,000 – 1,80,000 = 1,00,000
Goodwill = Super Profit × 100/Normal Rate of Return = 1,00,000 × 100/20 = 5,00,000
SOLUTION – 22. Ans. (c)
Sol. At the time of Dissolution of partnership firm, the need for valuation of goodwill does not arise.
SOLUTION – 23. Ans. (a)
Sol. Super profit = 6,00,000/3 = 2,00,000
Super Profit = Actual profit – Normal Profit
Normal Profit = 3,50,000 – 2,00,000 = 1,50,000
Capital Employed = 1,50,000 × 100/10 = 15,00,000
SOLUTION – 24. Ans. (c)
Sol. Balance of Provision for Bad debts = 18,000 – 10,000 = 8,000
Balance Debtors = 2,10,000 – 10,000 = 2,00,000
New Provision for Bad Debts = 10% of 2,00,000 = 20,000
Provision to be created = 20,000 – 8,000 = 12,000
Therefore, Revaluation Account will be debited by 12,000.
SOLUTION – 25. Ans. (b)
Sol. Super Profit = Goodwill/No of years purchase = 7,20,000/4 = 1,80,000
Normal Profit = Actual profit – Super Profit = 4,80,000 – 1,80,000 = 3,00,000
Percentage of Normal Profit = 3,00,000/25,00,000 × 100 = 12%
SOLUTION – 26. Ans. (a)
Sol. The change in the profit- sharing ratio of partners does not affect the value of goodwill of a partnership firm.
SOLUTION – 27. Ans. (b)
Sol.
| Year | Profits(₹) | Weights | Products |
| 2012-13 | 20,000 | 1 | 20,000 |
| 2013-14 | 24,000 | 2 | 48,000 |
| 2014-15 | 30,000 | 3 | 90,000 |
| 2015-16 | 25,000 | 4 | 1,00,000 |
| 2016-17 | 18,000 | 5 | 90,000 |
| Totals | 15 | 3,48,000 |
Weighted Average Profits = 3,48,000/15 = 23,200
Goodwill = Weighted Average Profits × No. of Years Purchase = 23,200 × 3 = 69,600
SOLUTION – 28. Ans. (c)
Sol. (A) Normal Rate of Return – (II) Usual return on capital employed
(B) Number of years purchase – (IV) Expected period for which returns are anticipated to accrue
(C) Capital Employed – (I) Total Assets – Outside Liabilities
(D) Super Profit – (III) Return over and above usual return in similar business
SOLUTION – 29. Ans. (b)
Sol.
(A) Increase in Furniture Value – Credit side of Revaluation A/c
(B) Depreciation on Machinery – Debit side of Revaluation A/c
(C) General Reserve – Credit side of Partner’s Capital A/c
(D) Goodwill appearing in Books – Debt side of Partner’s Capital A/c
SOLUTION – 30. Ans. (a)
Sol.
A. Sacrificing Ratio – II. Old Ratio – New Ratio
B. New Ratio – III. Old ratio + Gaining Ratio
C. Gaining Ratio – I. New Ratio – Old Ratio
D. Value of goodwill – IV. Average profit × No. of years purchase
Dear Students,
S.S. Sahoo’s Accounts Tuition Classes is going to start a Crash Course for CUET UG coaching for Commerce Domain subjects from 1st April 2026. The first 10 enrollments will get a 10% discount on the fee. Enroll Now!
S.S. Sahoo has 34 years of experience in teaching Commerce students from classes 11th, 12th, B.Com, and professional courses like CA, CMA, and CS.
We are providing CUET UG Coaching for Commerce domain subjects: Accounts, Business Studies, Economics, and Mathematics.
Our students have taken admission in reputed colleges of Delhi University. Feel free to call us at 9899808330.
