A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 42 - 45 of 50
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Question 42
Question
MCQ▾Goodwill of a firm is valued at three years purchase of average profit of the last five yea $ The profits are as under:-
1997- $ 50000 (Profit)
1998- $ 20000 (Loss)
1999- $ 10000 (Profit)
2000- $ 60000 (Profit)
2001- $ 80000 (Profit)
What will be the value of goodwill?
Choices
Choice (4) | |
---|---|
a. | 1,08, 000 |
b. | 80,000 |
c. | 1,80, 000 |
d. | 1,00, 000 |
Answer
a.Explanation
Question 43
Question
MCQ▾X ltd forfeited 200 shares of Simon of $ 10 each. $ 8 called up, on which he paid application and allotment money of $ 3 per share. Out of these, 100 shares were reissued as fully paid up for $ 8 per share. How much amount is transferred to capital reserve account?
Choices
Choice (4) | |
---|---|
a. | 200 |
b. | 100 |
c. | 400 |
d. | 300 |
Answer
b.Explanation
Amount to be transferred to Capital Reserve account is
Question 44
Question
MCQ▾X and Y entered a partnership with 50,000 and ₹ 60,000, after 4 months X invested ₹ 25,000 more while Y withdraw ₹ 20,000. Find the share of X in the annual profit of ₹ 289,000.
Choices
Choice (4) | |
---|---|
a. | 17000 |
b. | 15000 |
c. | 270000 |
d. | 170000 |
Answer
a.Explanation
Question 45
Question
MCQ▾What will be cash flow from investing activities from the following information?
Purchases | Amount $ |
Purchase of Machinery Purchase of Goodwill Purchase of investment Sale of Machine Sale of investment Sale of patents Interest & dividend received Rent received | 5,00, 000 2,00, 000 3,00, 000 70,000 60,000 80,000 20,000 40,000 |
Choices
Choice (4) | |
---|---|
a. | 7,30, 000 |
b. | -2,70, 000 |
c. | 2,70, 000 |
d. | -7,30, 000 |
Answer
d.Explanation
Cash Flow from Investing activities | $ | |
Add: - - - - … - - Less: | Sale of Machinery 70,000 Sale of Investment 60,000 Sale of Patent 80,000 Interest and Dividend received 20,000 Rent received 40,000 … Purchase of machinery 5,00, 000 Purchase of investments 3,00, 000 Purchase of goodwill 2,00, 000 | 2,70, 000 - - - - … - - 10,00, 000 |
Cash flow from investing activities | -7,30, 000 |