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Question-1
Average profit of a firm is Rs.70,000 and the rate of capitalization is10% sundry assets and sundry liabilities of the firm are Rs.7,00,000 and Rs.1,50,000 respectively. Calculate normal profit under capitalization of super profit method?
(A)
Rs.12,000
(B)
Rs.55,000
(C)
Rs.18,000
(D)
Rs.70,000
Question-2
(Capitalization of profit method) Average profit of a firm is RS 70,000 and the rate of Capitalization is 10% sundry asset and sundry liabilities of the firm are Rs 1,50,000 respectively. calculate Super profit?
(A)
Rs 1, 50,000
(B)
Rs 2000
(C)
Rs 15,000
(D)
Rs 70,000
Question-3
How many methods of capitalization of profits?
(A)
3
(B)
1
(C)
2
(D)
4
Question-4
The average profit of a firm is Rs 55,000 which includes abnormal income of Rs 5000 on an average base. The capital invested in the business is Rs 5,00,000 and normal rate of return is 8% calculate normal profit under super profit method?
(A)
Rs 50,000
(B)
Rs 40,000
(C)
Rs 30,000
(D)
Rs. 20,000
Question-5
How to calculate the average profit under average profit?
(A)
Average profit = Total of products / Total of weights
(B)
Average profit = Total profits/ No. of years
(C)
Average profit = Total of weights/ Total of production
(D)
None of these
Question-6
Goodwill arises only when the firm earns ___________________
(A)
Average profit
(B)
Weighted Average profit
(C)
Super profit
(D)
Capitalization of profit
Question-7
The books of a business showed that the capital employed on 31st December 2007 was 5, 00,000 and the profits for the last 5 years were as follows 2003-Rs 40,000 , 2004-Rs 50,000, 2005-Rs 60,000, 2006-Rs70,000 and 2007- Rs 80,000. Purchase of super profit of the business given that normal rate of return is 10%. Find out normal profit
(A)
Rs. 50,000
(B)
Rs 3, 00,000
(C)
Rs 10,000
(D)
Rs 60,000
Question-8
(Capitalization of Average profit method) Average profit of a firm is Rs 70,000 and the rate of Capitalization is 10% sundry assets and sundry liabilities of the firm are Rs 70,000 and Rs 1, 50,000 respectively. Find out value of Average profit?
(A)
Rs 70,000
(B)
Rs 55,000
(C)
Rs.1,50,000
(D)
Rs 7,00,000
Question-9
Which one of the following are not the miscellaneous factors of goodwill?
(A)
Political conditions
(B)
Research and department
(C)
Brand image
(D)
None of these
Question-10
While calculating the average profit abnormal income of a year such as income from speculation or lottery should be ---------------- profit of that year
(A)
Deducted doubt
(B)
Added
(C)
Multiplied
(D)
Divided
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Plus 2 Commerce
ICSE/ISC
Practice in Related Chapters
Partnership Accounts : Distribution of Profits
Goodwill - Concept and Mode its Valuation
Partnership Accounts : Admission of Partner
Capital Adjustment of Change of Profit Sharing Ratio
Admission of a Partner
Final Accounts of Companies
Joint Stock Company Accounts: Issue of Debentures
Cost Accounting An Introduction
Joint Venture Account
Sectional Balancing and Self Balancing System
Ratio Analysis
Cost Accounting Inventory Valuation
Cash Flow Statement
Cost Accounting Cost Sheet
Cash Flow Statement
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