1. Capital employed in a business is ₹ 1,50,000. Profits are ₹ 50,000 and the normal rate of profit is 20%. The amount of goodwill as per capitalisation method will be:

2. Weighted average method of calculating goodwill is used when:

3. The monetary value of reputation of the business is called:

4. A firm has an average profit of ₹ 60,000 Rate of return on capital employed is 12.5% p.a. Total capital employed in the firm was ₹ 4,00,000. Goodwill on the basis of two years purchase of super profit is :

5. Under capitalisation method, goodwill is calculated by :

6. “Goodwill is nothing more than probability that the old customer will resort to the old place.” This definition of goodwill was given by :

7. What will be the value of goodwill at twice the average of last three years profit if the profits of the last three years were ₹ 4,000, ₹ 5,000 and ₹ 6,000 ?

8. The Valuation of Goodwill is not necessary in Sole Trading: