CA Foundation Exam > CA Foundation Questions > A firm earned net profits during last 3 years...
Start Learning for Free
A firm earned net profits during last 3 years as following :
2001 Rs. 15,000
2002 Rs. 20,000
2003 Rs. 25,000
The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :
2001 Rs. 15,000
2002 Rs. 20,000
2003 Rs. 25,000
The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :
- a)Rs. 8,000
- b)Rs. 10,000
- c)Rs. 12,000
- d)Rs. 15,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A firm earned net profits during last 3 years as following :2001 Rs. 1...
Super profit=average profit -normal profit A.p=15000+20000+25000÷3=20000. N.p=100000×15%=15000 s.p=20000-15000 =5000×2years of purchase=10000
Free Test
FREE
| Start Free Test |
Community Answer
A firm earned net profits during last 3 years as following :2001 Rs. 1...
Calculation of Average Super Profit:
- Super profit = Net profit - (Fair return on capital employed)
- For 2001: Super profit = 15,000 - (0.15 x 1,00,000) = 0
- For 2002: Super profit = 20,000 - (0.15 x 1,00,000) = 5,000
- For 2003: Super profit = 25,000 - (0.15 x 1,00,000) = 10,000
- Average Super profit = (0+5,000+10,000)/3 = 5,000
Calculation of Goodwill:
- Goodwill = 2 x Average Super profit x Capital employed
- Goodwill = 2 x 5,000 x 1,00,000
- Goodwill = Rs. 10,000
Therefore, the correct option is B) Rs. 10,000.
- Super profit = Net profit - (Fair return on capital employed)
- For 2001: Super profit = 15,000 - (0.15 x 1,00,000) = 0
- For 2002: Super profit = 20,000 - (0.15 x 1,00,000) = 5,000
- For 2003: Super profit = 25,000 - (0.15 x 1,00,000) = 10,000
- Average Super profit = (0+5,000+10,000)/3 = 5,000
Calculation of Goodwill:
- Goodwill = 2 x Average Super profit x Capital employed
- Goodwill = 2 x 5,000 x 1,00,000
- Goodwill = Rs. 10,000
Therefore, the correct option is B) Rs. 10,000.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer?
Question Description
A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer?.
A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A firm earned net profits during last 3 years as following :2001 Rs. 15,0002002 Rs. 20,0002003 Rs. 25,000The capital investment in the firm is Rs. 1,00,000. Having regard to risk involved 15% is the fair return on capital employed. Goodwill on basis of 2 years purchase of average Super profits earned during 3 years is :a)Rs. 8,000b)Rs. 10,000c)Rs. 12,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup