ICSE Class 12 Accountancy — Practice Quiz

A and B are partners without a deed. A wants interest on capital at 10% p.a. on ₹50,000. What is the correct treatment?

A partnership deed is silent about interest on capital, and the firm's profit before interest is ₹8,000. The agreed interest on capital for A and B is ₹6,000 and ₹4,000 respectively. How is the available profit distributed?

A firm has no deed. Partner X withdrew ₹24,000 during the year as drawings. What interest is charged on drawings?

A firm has capital employed of ₹4,00,000 and average profit of ₹72,000. Normal rate of return is 15%. What is the goodwill by capitalisation of super profit method?

Goodwill is an intangible asset in a profit-seeking business. Which statement about goodwill is correct?

The goodwill of a business is best described as the value of its _____.

A firm has average profit of ₹5,00,000 and goodwill is valued at 2 years' purchase. What is the value of goodwill?

The profits for four years are ₹3,50,000, ₹4,75,000, ₹6,70,000 and ₹7,45,000. Closing stock was overvalued by ₹15,000, and annual management cost of ₹56,250 must be deducted before goodwill valuation. If goodwill is valued at 2 years' purchase, what is the goodwill?

A new partner brings ₹2,00,000 as capital and his share of goodwill is 4/10 of the total firm's goodwill. If the firm's goodwill is ₹70,000, what is the new partner's share of goodwill?