CA Foundation Exam > CA Foundation Questions > Goodwill is to be calculated at 1.5 years of ...
Start Learning for Free
Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :
- a)Rs. 10,000
- b)Rs. 15,000
- c)Rs. 20,000
- d)Rs. 25,000
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Goodwill is to be calculated at 1.5 years of purchase of average profi...
Calculation of Goodwill:
1. Average profit for the last 6 years:
The average profit for the last 6 years can be calculated as follows:
Total profit for the last 6 years = (30,000 + 20,000 + 20,000 - 5,000 - 3,000 - 2,000) = 60,000
Average profit for the last 6 years = Total profit for the last 6 years/6 = 60,000/6 = Rs. 10,000
2. Goodwill:
Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years.
Goodwill = 1.5 x Average profit for the last 6 years = 1.5 x Rs. 10,000 = Rs. 15,000
Therefore, the correct answer is option B, which is Rs. 15,000.
1. Average profit for the last 6 years:
The average profit for the last 6 years can be calculated as follows:
Total profit for the last 6 years = (30,000 + 20,000 + 20,000 - 5,000 - 3,000 - 2,000) = 60,000
Average profit for the last 6 years = Total profit for the last 6 years/6 = 60,000/6 = Rs. 10,000
2. Goodwill:
Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years.
Goodwill = 1.5 x Average profit for the last 6 years = 1.5 x Rs. 10,000 = Rs. 15,000
Therefore, the correct answer is option B, which is Rs. 15,000.
Free Test
FREE
| Start Free Test |
Community Answer
Goodwill is to be calculated at 1.5 years of purchase of average profi...
Goodwill = av.profit * no. of yrs purchase= (60000÷6)*1.5 = 15000
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer?
Question Description
Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer?.
Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct 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 Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Goodwill is to be calculated at 1.5 years of purchase of average profit of last 6 years. Profit earned during the first 3 years is Rs. 30,000, Rs. 20,000 and Rs. 20,000 and losses suffered of Rs. 5,000, Rs. 3,000 and Rs. 2000 in the last three years. Goodwill will be :a)Rs. 10,000b)Rs. 15,000c)Rs. 20,000d)Rs. 25,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
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!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup