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Latest UPPSC Lecturer Commerce Exam Question (Objective Questions), MCQ in English
Subjects : General Studies, Commerce
Question Bank UPPSC Lecturer Commerce Prelims Exam - English
General Studies
Q 1 :
Yojna a weekly journal
A.Ministry of Finance
B.Ministry of Information and Broadcastin
C.Ministry of Rural Development
D.Planning Commission
Q 2 :
Kurukshetra a journal on rural development is published by
A.Ministry of Finance
B.Ministry of Information and Broadcastin
C.Ministry of Rural Development
D.Planning Commission
Q 3 :
Devaluation of a currency means
A.Fixing the value of the currency in conjuction with the movement in the value of a basket of predetermined currencies
B.Reduction in the value of a currency vis-à-vis major internationally traded currencies
C.Fixing the value of currency in multilateral consultaion with the IMF the World Bank and major trading partners
D.Permitting the currency to seek its worth in the international market
Q 4 :
In India rural incomes are generally lower than the urban incomes, which of the following reasons account for this
1. a large number of farmers are illiterate and know little about scientific agriculture
2. prices of primary products are lower than those of manufactured products
3. Investments in agriculture has been low when compared to investment in industry
A.1 and 3
B.2 and 3
C.1 and 2
D.1,2 and 3
Q 5 :
Which of the following programmes aims at the promotion of savings among rural women
A.Rashtriya Mahila Kosh
B.Indira Mahila Yojna
C.Jawahar Rozgar Yojna
D.Mahila Samridhi Yojna
Q 6 :
What is Net National Product
A.the money value of final goods and services produced annually in the economy
B.the money value of annual service generation in the economy
C.the money value of tangible goods produced annually in the economy
D.The money value of tangible goods available in the economy
Q 7 :
National income is the
A.net national product at market price
B.net national product at factor cost
C.net domestic product at market price
D.net domestic product at factor cost
Q 8 :
Chelliah Committee of 1992 deals with the overhauling of our
A.financial system
B.tax system
C.patents and copyrights
D.Public sector undertakings
Q 9 :
During which Five Year Plan was the annual growth rate of National Income the lowest
A.2nd plan
B.3rd plan
C.5th plan
D.6th plan
Q 10 :
Which of the following taxes is a progressive tax
A.sales tax
B.custom tax
C.excise tax
D.income tax
Q 11 :
When Uttar Pradesh got it officially as statehood ?
A.24 January, 1950
B.26 January, 1952
C.1 January, 1956
D.18 February, 1957
Q 12 :
How many districts are there in Uttar Pradesh
A.60
B.57
C.75
D.87
Q 13 :
What are the official languages of Uttar Pradesh ?
A.Hindi & Urdu
B.Only Hindi
C.Only Urdu
D.Kumaoni
Q 14 :
How many members of Lok Sabha from Uttar Pradesh ?
A.56
B.78
C.80
D.51
Q 15 :
How many members of Rajya Sabha from Uttar Pradesh ?
A.45
B.51
C.31
D.77
Q 16 :
What is the state flower of Uttar Pradesh ?
A.Lily
B.Rose
C.Palash
D.Sunflower
Q 17 :
What is state sport of Uttar Pradesh ?
A.Field Hockey
B.Cricket
C.Football
D.Swimming
Q 18 :
How many total cities / towns in Uttar Pradesh ?
A.567
B.450
C.689
D.510
Q 19 :
What is state dance of Uttar Pradesh ?
A.Kathak
B.Rauf
C.Kathakali
D.Bharat Natyam
Q 20 :
What is state tree of Uttar Pradesh ?
A.Neem
B.Peepal
C.Ashok
D.Mango
Q 21 :
What is state bird of Uttar Pradesh ?
A.Saras Crane
B.Peacock
C.Parrot
D.Pigeon
Q 22 :
What is state animal of Uttar Pradesh ?
A.Lion
B.Elephant
C.Horse
D.Swamp Deer
Q 23 :
Charkula, Karma, Pandav, Pai - danda, Tharu, Dhobia, Raai, Shaira are form / type of
A.Folk music
B.Folk dance
C.Staple food
D.Both (a) & (b)
Q 24 :
How many municipal corporations in Uttar Pradesh ?
A.13
B.12
C.10
D.11
Q 25 :
Chikan work, Carpet Weaving, Brassware work are form of
A.Painting
B.Handicrafts
C.Folk music
D.Narrative story telling
Q 26 :
Which one of the following is state fish of Uttar Pradesh ?
A.Chital (Chitala chitala)
B.Alaskan Pollock
C.Trout
D.Tilapia
Q 27 :
What is the scientific name of the Barasingha ?
A.Cervidae
B.Alces alces gigas
C.Rucervus Duvaucelii
D.Alces alces andersoni
Q 28 :
Which city is known as brass city ?
A.Meerut
B.Moradabad
C.Lucknow
D.Mirzapur
Q 29 :
Which city is largest producer of musical instruments in India ?
A.Meerut
B.Rampur
C.Mathura
D.Agra
Q 30 :
Hindon airport is located in which city ?
A.Modinagar
B.Haridwar
C.Balia
D.Ghaziabad
Q 31 :
Which ministry launched the ‘MY Bharat Aapda Mitras’ initiative for flood relief in Punjab and Himachal Pradesh in 2025?
A.Ministry of Home Affairs
B.Ministry of Youth Affairs and Sports
C.Ministry of Rural Development
D.Ministry of Finance
Q 32 :
Which city has launched the ‘Climate Mission’ to become the world’s first energy-literate city in 2025?
A.Roorkee, Uttarakhand
B.Indore, Madhya Pradesh
C.Jaisalmer, Rajasthan
D.Varanasi, Uttar Pradesh
Q 33 :
What is the full form of UNOCT, which launched the Victims of Terrorism Advocacy Network (VoTAN) in 2025?
A.United Nations Organization for Conflict Termination
B.United Nations Office for Cultural Transition
C.United Nations Office of Counter-Terrorism
D.United Nations Office for Crisis Transition
Q 34 :
The Kresheninnikov Volcano, which erupted in 2025, is located in which region?
A.Kamchatka Peninsula, Russia
B.Hokkaido, Japan
C.Alaska, USA
D.Iceland
Q 35 :
Which country’s Prime Minister mediated the ceasefire between Thailand and Cambodia in July 2025?
A.Thailand
B.Cambodia
C.Vietnam
D.Malaysia
Q 36 :
Which state government launched the ‘Brindavan Gram Scheme’ in 2025?
A.Uttar Pradesh
B.Madhya Pradesh
C.Gujarat
D.Assam
Q 37 :
Who won the FIDE Women’s World Cup 2025?
A.Koneru Humpy
B.Hou Yifan
C.Anna Muzychuk
D.Ju Wenjun
Q 38 :
The ‘Smart Cities Mission’ completed how many years in 2025?
A.8
B.10
C.12
D.15
Q 39 :
Which government agency manages Aadhaar in India, as highlighted in 2025?
A.National Informatics Centre (NIC)
B.Ministry of Home Affairs (MHA)
C.Central Bureau of Investigation (CBI)
D.Unique Identification Authority of India (UIDAI)
Q 40 :
Which country launched the GOSAT-GW climate observation satellite in 2025?
A.United States
B.India
C.China
D.Japan
Commerce
Q 41 :
Which is the most potent driver of business transformation during Covid-19 pandemic ?
A.Ethical consciousness
B.Scale economies and pricing power
C.Technology adoption and innovation
D.Supply chain logistics and government interventions
Q 42 :
Counter Vailing Duties (CVD) are often imposed on imports to off set the impact of :
A.Predatory pricing
B.Export subsidies
C.Dumping
D.Low cost financing
Q 43 :
To prevent opportunistic takeover of domestic firms amid Covid-19 pandemic. Foreign Direct Investment (FDI) from countries that share borders with India is allowed through :
A.Automatic route
B.Government route
C.FIPB route
D.DPIIT route
Q 44 :
Factor conditions in Michael Porter’s competitive advantage National Include :
A.Market size
B.Demand conditions
C.Internationally competitive suppliers
D.Skilled labour and scientific knowledge
Q 45 :
In case the purchasing company agrees to act as the agent of the vendor for collection of the book debts, in the books of the purchasing company, the amount of debtors should be credited to :
A.Vendor’s debtors account
B.Vendor’s suspense account
C.Debtors account
D.Creditors account
Q 46 :
Companies Act is governed by
A.RBI
B.SEBI
C.Partnership Act
D.Ministry of Corporate Affairs
Q 47 :
Own shares purchased by a company with a view to reduce its capital is called
A.sale
B.Purchase
C.buy-back
D.Private placement
Q 48 :
A company in which there is only one member is called
A.one member company
B.one person company
C.single company
D.Individual company
Q 49 :
Shares which have preferential rights are called
A.Equity share
B.Preference share
C.Debenture
D.Bond
Q 50 :
Which of the following is the registered capital of the company ?
A.Nominal capital
B.Authorised capital
C.Share capital
D.Both (a) and (b)
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UPPSC Lecturer Commerce Prelims Exam Bank Book - Hindi
Capital which is called only at the time of winding-up of the company is called
A.Capital reserve
B.Reserve capital
C.Secure capital
D.Authorised capital
Q 52 :
Which kind of preference share entitIes its holders to receive arrear of dividends of previous years ?
A.Cumulative preference share
B.Non-cumulative preference share
C.Convertible preference share
D.Non-convertible dividend share
Q 53 :
Which document is an invitation offer to public to subscribe for company’s share ?
A.Red herring prospectus
B.Prospectus
C.In lieu of prospectus
D.None of the above
Q 54 :
The balance of share forfeiture account can be used to
A.Provide for discount given at the time of reissue
B.Write-off preliminary expenses
C.Write-off bad debts
D.None of the above
Q 55 :
A company issued 25,000 shares and received applications for 35,000 shares. Company wants to allot shares to everyone who has applied. What will be the ratio for allotment ?
A.6 : 7
B.7: 5
C.5 : 7
D.7 : 6
Q 56 :
A company issued 10,000 shares of Rs10 each. Amount is payable as Rs 2 on application, Rs 5 on allotment and Rs 3 on first and final call. A shareholder who had 1,000 shares failed to pay allotment and first call amount on due date. After a month, he paid the due amount. What will be the amount received by company against issue of shares ?
A.Rs 92,000
B.Rs 90,000
C.Rs 1,00,000
D.Rs 8,000
Q 57 :
Nominal share capital is
A.That part of the authorised capital which is issued by the company
B.The amount of capital which is actually applied for by the prospective shareholders
C.The maximum amount of share capital which a company is authorised to issue
D.The amount actually paid by the shareholders
Q 58 :
Money received in advance from shareholders before it is actually called-up by the directors is
A.Mebited to calls-in-advance account
B.Credited to calls-in-advance account
C.Debited to calls account
D.None of the above
Q 59 :
Shares can be forfeited
A.For non-payment of call money
B.For failure to attend meetings.
C.For failure to repay the loan to the bank
D.For which shares are pledged as a security.
Q 60 :
The profit on reissue of forfeited shares is transferred to
A.General reserve
B.Capital redemption reserve
C.Capital reserve
D.Revenue reserve
Q 61 :
Balance of share forfeiture account is shown in the balance sheet under the item
A.Current liabilities and provisions
B.Reserves and surpluses
C.Share capital
D.Unsecured loans
Q 62 :
Amox Ltd. is registered with a capital of 10,00,000 equity shares of Rs 10 each. 6,00,000 equity shares were offered for subscription to public. Applications were received for 6,00,000 shares. All calls were made and amount was duly received except final call of Rs 2 on 80,000 shares.What Will will be the amount of share capital shown in the balance sheet ?
A.Rs 60,00,000
B.Rs 58,40,000
C.Rs 5,84,000
D.Rs 6,00,000
Q 63 :
Which amongst the following shares conter voting rights on its holders ?
A.Equity shares
B.Redeemable preference shares
C.Participatory preference shares
D.None of the above
Q 64 :
Amount payable on shares can be received in installments by the company. What is the first installment called ?
A.Application money
B.Allotment money
C.First call money
D.Second call money
Q 65 :
Total capital specified in capital clause is Rs 50,00,000 which is divided in 35,000 equity shares of Rs 100 each and 15,000, 10% preference shares of Rs100 each. The company issued 10,000 equity shares and 5,000 preference shares. The public subscribed for 9,000 equity shares and 4,500 preference shares out of the issued shares. What will be the subscribed capital amount ?
A.Rs 50,00.000
B.Rs 50,000
C.Rs 9,00,000
D.Rs 13,50,000
Q 66 :
Akash Ltd. registered capital is Rs 50,00,000 in shares of Rs 10 each.The company issued 2,00,000 of such shares, payable @ Rs 3 per share on allotment. What will be the amount due on allotment, if shareholder holding 20,000 shares paid all call money at the time of allotment only ?
A.Rs 4,00,000
B.Rs 6,00,000
C.Rs 60,000
D.Rs 1,50,000
Q 67 :
The subscribed share capital of XYZ Ltd. is 80.00.000 divided in shares of Rs 100 each. There were no calls-in-arrears till the final call was made. The final call was paid on 77,500 shares. The calls-in-arrears amounted to Rs 62,500. Calculate the final call per share.
A.Rs 20
B.Rs 30
C.Rs 25
D.Rs 35
Q 68 :
Shares for consideration other than cash can be issued at
A.Par
B.Premium
C.Discount
D.Both (a) and (b)
Q 69 :
Neton Ltd. has in its memorandum of association.Capital clause stating that it is formed with 75,000 equity shares of Rs 100 each. The company has issued the entire shares and the public has also subscribed and paid-up for the full amount on application itself. What will be the subscribed capital Rs
A.Rs 75,00,000
B.Rs 10,00,000
C.Rs 1,00,000
D.Rs 7,50,000
Q 70 :
Shareholders receive ......... from the company as a benefit against their investment.
A.Interest
B.Commission
C.Profit
D.Dividend
Q 71 :
If the purchase consideration is more than net worth, then which account will be debited for the difference amount ?
A.Capital Reserve A/c
B.Asset A/c
C.Goodwill A/c
D.Vendor A/c
Q 72 :
Singh who was allotted 200 equity share of Rs 20 each by a ’company, failed to pay Rs 8 each on final call. Shares were re-issued to Kumar at Rs 20 each. What will be the journal entry on re-issue ?
A.Bank A/c Dr 4000
To Equity Share Capital A/c 4000
B.Equity Share Capital A/c Dr 4000
To Bank A/c 4000
C.Bank A/c Dr 4000
To Share Forfeiture A/c 4000
D.Share Forfeiture A/c Dr 4000
To Bank A/c 4000
Q 73 :
Issued 10,000 shares of Rs 100 each to the Narayan Ltd. @10% premium and paid Rs 2,00,000 in cash for a consideration of running business purchased. Journalise this transaction .
A.Narayan Ltd. Dr 13,00,000
To Share Capital A/c 10,00,000
To Securities Premium Reserve A/c 1,00,000
To Cash A/c 2,00,000
B.Narayan Ltd. Dr 13,00,000
To Share Capital A/c 13,00,000
C.Narayan Ltd. Dr 13,00,000
To Cash A/c 13,00,000
D.Share Capital A/c Dr 100000
Securities Premium Reserve A/c Dr 1,00,000
Cash A/c Dr 2,00,000
To Narayan Ltd. 1300000
Q 74 :
Pass the journal entry for amount of first call, Rs 90,000 received after deducting calls-in-arrears of Rs 6,000 .
A.Bank A/c Dr 90,000
Calls-in.arrears A/c Dr 6,000
To Share First Call A/c 96,000
B.Share First Call A/c Dr 96,000
To Bank A/c 90000
To Calls-in-arrears A/c 6000
C.Bank A/c Dr 96,000
To Share First Call A/c 96000
D.None of the above
Q 75 :
Which of the following is main source of income of non-profit organisation ?
A.Sale of old books
B.Sale of old furniture
C.Received subscription
D.Business
Q 76 :
There are 500 members in Diamond Club, paying an annual subscription of Rs 50 each. Subscription received during the year Rs 20,000 including Rs 2,000 for next year. Calculate amount to be shown as outstanding subscription.
A.Rs 7,000
B.Rs 5,000
C.Rs 25,000
D.Rs 18,000
Q 77 :
Donation can be
A.General donation
B.Specific donation
C.Both (a) and (b)
D.None of these
Q 78 :
In the final account of non-profit organisation, closing balance of cash will be recorded in
A.Receipt and payment account only
B.Balance sheet only
C.Income and expenditure account
D.Receipt and payment account and balance sheet both
Q 79 :
In the absence of any specific information, entrance fees may be treated as
A.Revenue receipt
B.Capital receipt
C.Non-cash receipt
D.Deferred receipt
Q 80 :
Consider the following statements
I. Income and expenditure records both capital and revenue items.
II. Receipt and payment account records only revenue items during the year.
Choose the correct option
A.Both are incorrect
B.Both are correct
C.Only (i) is correct
D.Only (ii) is correct
Q 81 :
Find the cost of medicines consumed, if Opening stock of medicines Rs 30,000 Purchases during the year Rs 50,000 Closing stock Rs 20,000
A.Rs 80,000
B.Rs 60,000
C.Rs 50,000
D.Rs 40,000
Q 82 :
For the year ending 31st March, 2022, the following entries appeared related to subscription received
2020-21 5,000
2021-22 96,000
2022-23 10,400
The club has 300 members, paying annual subscription of Rs 400 each. Subscription outstanding on 31st March, 2021 was Rs 8,000. Calcu late the amount of subscription to be shown in the income and expenditure account ?
A.Rs 96,000
B.Rs 1,11,400
C.Rs 1,20,000
D.Rs 91,000
Q 83 :
What amount of rent will be transferred to debit side of income and expenditure account, if rent paid during the year was Rs 70,000, rent outstanding at the end of the year Rs 6,000 and rent outstanding at the beginning of the year Rs 8,000 ?
A.Rs 60,000
B.Rs 68,000
C.Rs 70,000
D.Rs 72,000
Q 84 :
On 15th April, 2021, assets of Ashish club was as follows
Assets : Land and building Rs 1,00,000, Cash in hand Rs 30,000, Furniture Rs 65,000, Subscription receivable Rs 30,000 .
Liabilities : Bank overdraft Rs 1,25,000, Outstanding salaries Rs 15,000.Capital fund as on 1st April, 2021 will be
A.Rs 85,000
B.Rs 75,000
C.Rs 1,10,000
D.Rs 8,000
Q 85 :
Consider the following information Sports fund investment Rs 70,000
Donation for sports fund Rs 15,000 Sports prizes awarded Rs 10,000
Expenses on sports events Rs 8,000 Income from sports fund investment Rs 5,000 Calculate amount of sport fund that will be shown in liability side of balance sheet.
A.Rs 40,000
B.Rs 38,000
C.Rs 45,000
D.Rs 72,000
Q 86 :
Calculate the amount of locker rent to be transferred to income and expenditure account .
Particulars 31st March, 2021 (Rs) 31st March, 2022 (Rs)
Outstanding Locker Rent 9,200 12,600
Advance Locker Rent 6,000 8,000
Locker rent received during the year 2021-22, Rs. 64,000 .
A.Rs 65,400
B.Rs 66,500
C.Rs 66,000
D.Rs 73,000
Q 87 :
Opening balance of prize fund was Rs 16,400. During the year, donations received towards this fund amounted to Rs 7,700, while amount spent on prizes was Rs 6,150 and interest received on prize fund investment was Rs 2,000. The closing balance of prize fund will be
A.Rs 28,250
B.Rs 32,250
C.Rs 19,950
D.Rs 15,950
Q 88 :
Capital fund in non-profit organisation will be
A.Total Assets - Total Liabilities
B.Total Assets - External Liabilities
C.Total Assets - internal Liabilities
D.Total Fund - Total External Liabilities
Q 89 :
Receipt and payment account is the summary of
A.Bank balance
B.Capital account
C.Cash hook
D.Income and expenditure account
Q 90 :
The amount of subscriptions received in advance shown in
A.liabilities side
B.Assets side of balance sheet
C.payments side of receipts and payments account
D.None of the above
Q 91 :
Receipt and payment account generally shows
A.A debit balance
B.A credit balance
C.Surplus and deficit.
D.Capital fund
Q 92 :
Item that should be debited in the income and expenditure account of a college is
A.Tuition fees received from students
B.Equipment purchased for science laboratory
C.Amount of reward
D.Fines collected from students
Q 93 :
Receipt and payment account shows
A.Income and expenditure
B.Profit and loss
C.Saving and deficit
D.Cash receipts and payments
Q 94 :
Funds raised by non-profit organisation for its operation are credited to
A.Capital Fund of NPO
B.General fund of NPO
C.Reserve Fund of Bank
D.Both (a) and (b)
Q 95 :
Which of the following cannot be recorded in the receipt and payment account of a club ?
A.Payment made to workers
B.Sale of old newspaper
C.Loss on sale of fixed asset
D.All of the above
Q 96 :
Uttar Charitable gets surplus from his income and expenditure account of Rs. 65,000 in 2018-19. It will be recorded in debit side of the account.
A.Receipts and payments
B.Income and expenditure
C.Both (a) an.d (b)
D.None of these
Q 97 :
Pass journal entry for subscription recorded in the Income and Expenditure
A.Income and expenditure account. Dr --
To Subscription A/c --
B.Subscription A/c Dr --
To Income and Expenditure A/c ..---
C.Bank A/c Dr —
To Income and Expenditure Alc ---
D.None of the above
Q 98 :
Which of the following will be recorded in credit side of receipts and payments account ?
A.300 received from entrance tees
B.Cash purchases of books 700
C.Donation received Rs 800
D.Outstanding 300 for repair
Q 99 :
25 Profit or loss on sale of any fixed asset is treated as…. in concern Of NPOs.
A.capital income or lc
B.revenue income or loss
C.Not considered while preparing account
D.None of the above
Q 100 :
Pass the journal entry for Royal Dance Club, whose deficit is calculated Rs. 91,000 during 2019-20 .
A.Income and Expenditure Ac Dr 91000
To Deficit Aic 91,000
B.Deficit A/c Dr 91000
To Income and Expenditure A/c 91000
C.Cash A/c Dr 91000
To Income and Expenditure A/c 91000
D.None of the above
Q 101 :
A non-profit organisation normally prepares ….;
before preparing balance sheet.
A.Income and expenditure account
B.Real account
C.Trading account
D.None of the above
Q 102 :
Debit balance in receipts and payments account was shown as 80.000. subscription received amounted to Rs 9,600 out of which Rs 3.000 is related to next year. According to you. what amount will be shown in receipts and payments account ?
A.Rs. 80.000
B.Rs 89600
C.Rs. 9.600
D.Rs 86600
Q 103 :
What is an accounting treatment of cash received for life membership fees ?
A.Debit in income and expenditure account
B.Credit in income and expenditure account
C.To be shown in liabilities column of balance sheet
D.To be shown in assets column of balance sheet
Q 104 :
Nature of goodwill is
A.Intangible asset
B.fictitious asset
C.long-term liability
D.current asset
Q 105 :
Which of the following is/are method(s) of valuation of goodwill ?
A.Average profit method
B.Super profit method
C.Capitalisation method
D.All of these
Q 106 :
Which of the following factor(s) affect goodwill ?.
A.Nature of business
B.Efficiency of management
C.Location
D.All of these
Q 107 :
Find out those situations which create need for valuation of goodwill for a partnership firm ?
A.When existing partners change their profit sharing ratio
B.When a new partner comes into partnership
C.When an existing partner retires from partnership
D.All of the above
Q 108 :
Find out that goodwill which is accounted for, as per Accounting Standard.
A.Purchased goodwill
B.Self-generated goodwill
C.Both (a) and (b)
D.Goodwill brought in by a partner
Q 109 :
The profits for last 3 years were
lst year = Rs 6,000 (including abnormal gain Rs. 2,000)
2nd year = Rs. 4,000 (after charging abnormal loss Rs. 3,000)
3rd year = Rs. 2,500 (including abnormal income Rs. 1,500)
Calculate goodwill on the basis of 3 years’ purchase of last 3 years profits and losses.
A.Rs. 12,500
B.Rs. 12,000
C.Rs. 13,000
D.Rs. 16,000
Q 110 :
Capital employed in a business is Rs. 2,00,000.Normal rate of return on capital employed is 15%. During the year, the firm earned a profit of Rs. 48,000. Calculate goodwill on the basis of 3 years’ purchase of super profit.
A.Rs. 54,000
B.Rs. 60,000
C.Rs. 50,000
D.None of these
Q 111 :
A firm earns Rs. 1,20,000 as its annual profits. The normal rate of profit being 10%. Assets of firm are Rs. 14,40,000 and liabilities are Rs. 4,40,000. Find value of goodwill by capitalisation method.
A.Rs. 4,00,000
B.Rs. 2,80,000
C.Rs. 2,00,000
D.Rs. 3,60,000
Q 112 :
Average profit of firm is Rs. 3,00,000. Total tangible assets in the firm are Rs. 28,00,000 and outside liabilities are Rs. 8,00,000. In same type of business, normal rate of return is 10% of capital employed. Calculate goodwill by capitalisation of super profit method.
A.Rs. 14,00,000
B.Rs. 16,00,000
C.Rs. 18,00,000
D.Rs. 10,00,000
Q 113 :
Which of the following is not true in relation to goodwill ?
A.It is an intangible asset
B.It is fictitious asset
C.It has a realisable value
D.None of the above
Q 114 :
When goodwill is not purchased, goodwill account can
A.Never be raised in the books
B.Be raised in the books
C.Be partially raised in the books
D.Be raised as per the agreement of the partners
Q 115 :
The goodwill of the firm not affected by
A.location of the firm
B.Reputation of firm
C.Better customer service
D.None of the above
Q 116 :
Weighted average method of calculating goodwill is used when
A.Profits are not equal
B.Profits show a trend
C.Profits are fluctuating
D.None of these
Q 117 :
The profits earned by a business over the last 5 years are Rs. 12,000; Rs 13,000; Rs. 14,000; Rs.18,000; and Rs. 2,000 (1oss). Based on 2 years purchase of the last 5 years profits, value of goodwill will be
A.Rs. 23,600
B.Rs. 22,000
C.Rs. 1,10,000
D.Rs. 1,18,000
Q 118 :
Under the capitalisation method, the formula for calculating the goodwill is
A.Super profits multiplied by the rate of return
B.Average profits multiplied by the rate of return
C.Super profits divided by the rate of return
D.Average profits divided by the rate of return
Q 119 :
The net assets of a firm including fictitious assets of Rs. 5,000 are Rs. 85,000. The net liabilities of the firm are Rs. 30.000. The normal rate of return is 10% and the average profits of the firm are Rs. 8,000. Calculate the goodwill as per capitalisation of super profits.
A.Rs. 20,000
B.Rs. 30,000
C.Rs. 25,000
D.None of these
Q 120 :
Total capital employed in the firm is Rs. 8,00,00, reasonable rate of return is 15% and profit for the year is Rs. 12,00,000. The value of goodwill of the firm as per capitalisation method would be
