Target Exam

CUET

Subject

Accountancy Part A

Chapter

Admission of a Partner

Question:

Arrange the following steps in the correct order for valuation of goodwill by super profit method.

(A) Calculation of normal profit based on capital employed of the firm.

(B) Calculation of super profit

(C) Calculation of capital employed of the firm

(D) Calculation of goodwill by multiplying super profit with number of years purchase.

Choose the correct answer from the options given below:

Options:

(A), (C), (B), (D)

(A), (B), (C), (D)

(C), (A), (B), (D)

(C), (B), (D), (A)

Correct Answer:

(C), (A), (B), (D)

Explanation:

The correct answer is Option (3) → 

(C), (A), (B), (D)