Goodwill

Q.

What is goodwill ? What factors affect goodwill ?

Q.

Which of the following is not a method for valuation of goodwill?

1. Capitalisation Method

2. Average profit method

3. Realisation method

4. Super Profit method

Q.

What is the journal entry when the incoming partner brings money in the business.

1. Old partner's capital A/c Dr.

   To Cash

2. Incoming Partner's Capital A/c Dr.

   To Cash

3. Cash A/c Dr.

   To Incoming Partner's Capital A/c

4. Cash A/c Dr.

   To Old Partner's Capital A/c

Q.

Goodwill brought in by an incoming partner in cash for joining in a partnership firm is can be taken by old partners in their -

1. sacrificing ratio

2. old profit sharing ratio

3. new profit sharing ratio

4. capital ratio

Q.

What Is Goodwill?

Q.

Explain various methods for the treatment of goodwill on the admission of a new partner?

Q.

Goodwill brought in by the incoming partner in cash for joining in a partnership firm is adjusted by giving affect to old partners capital accounts in:

1. capital ratio

2. sacrificing ratio

3. new profit sharing ratio

4. old profit sharing ratio

Q.

___ is good name for the reputation of the business, which is earned by a firm through the hardwork and honesty of its owners.

1. None of the above

2. Goodwill

3. Fame

4. Reputation

Q.

Rajesh and Mukesh are equal partners in a firm. They admit Hari into partnership and the new profit sharing ratio between Rajesh, Mukesh and Hari is 4:3:2. On Hari’s admission goodwill of the firm is valued at Rs 36, 000. Hari is unable to bring his share of goodwill premium in cash. Rajesh, Mukesh and Hari decided not to show goodwill in their balance sheet. Record necessary journal entries for the treatment of goodwill on Hari’s admission.

Q.

Define Partnership Deed.

Q.

On what occasions sacrificing ratio is used?

Q.

How will an intangible asset which has been purchased from another entity be recorded?

Q.

How Do You Know if Goodwill Is Negative?

Q. Goodwill is a current Asset.

1. True
2. False

Q.

Explain how will you deal with goodwill when new partner is not in a position to bring his share of goodwill in cash.?

Q.

What is a secret reserve?

Q. What is meant by Purchased Goodwill?

Q.

If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?

Q. account is debited when the incoming partner brings money in the business.

1. Bank
2. Partner's current
3. Goodwill
4. Fixed asset

Q.

What Are the Methods of Valuation of Goodwill?

Q. Sacrificing ratio is _____________.

1. Old profit sharing ratio - new profit sharing ratio
2. Equal to old profit sharing ratio
3. Equal
4. New profit sharing ratio - old profit sharing ratio

Q. What is meant by "Sacrificing Ratio"?

Q. What is meant by Self-generated Goodwill?

Q. State whether the following statements are true or false :

If goodwill is written off retiring partner’s capital account is debited.

Q. What do you understand by relationship type? How is it different from relationship instance and relationship set?

Q.

Explain the treatment of goodwill at the time of retirement or on the event of death of a partner?

Q. When debit balance as per cash book is the starting point, direct deposits by customers are __________ .

1. added
2. not required to be adjusted
3. none of these
4. subtracted

Q. Are the following entered (i) on the credit side or the debit side and (ii) in the current account or capital account in the Balance of Payments account? You must give reason for your answer.
(a) Investments from abroad.
(b) Transfer of funds to relatives abroad.

Q.

As far as accountancy is concerned, goodwill means-

1. present profits

2. past profits

3. future profits

4. all of the above

Q. When partners chose to take the money invested in the business entirely, we debit account and credit account.

1. new
2. old and new
3. gaining
4. capital