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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

Arrange the Following Steps to Calculate Goodwill under the Super Profits Method-

(A) Calculate the normal profit on the firm's capital on the basis of the normal rate of return
(B) Calculate the average profit
(C) Calculate the super profits by deducting normal profit from the average profits
(D) Calculate goodwill by multiplying the super profits by the given number of years' purchase

Choose the correct answer from the options given below:

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is Option (3) → (B), (A), (C), (D)

CUET Questions