Change in Profi...

Capitalisation method for goodwill is used when:

If average profit of a business is Rs.50,000 and normal profits are Rs.60,000, it shows:

Internal Goodwill is calculated when:

Annual profit shown by a business is Rs.20,000. Normal rate of return 10%. Total assets of the business firm Rs.2,40,000 and liabilities Rs.80,000. Value of Goodwill will be:

Profits/losses of a firm for last 4 years are Rs. 10,000 (Loss) ; Rs.15,000 profit ; 20,000 profit ; Rs.15,000 profit. Calculate Goodwill at 1 ½ years purchase of average profits of last 4 years .

Example of cash equivalent is___

Accounting Standard ____ requires goodwill should be recorded in the books of accounts only when some money or money’s worth is paid for it.

__________ goodwill should not be recognized as an asset because it is not an identifiable resource controlled by an enterprise that can be measurable reliably at cost

According to AS – 26 goodwill should be recorded in the books only when some consideration in money or money’s worth has been paid for it. This statement is

A, B and C are partners sharing profits in the ratio of capitals (old 5:3:2 and new 2:3:5).Their capital after adjustment in new capital ratio are ` 20,000, ` 30000, ` 50000. Who will bring the amount of actual cash for adjustment?