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[#2696] Average profit Rs. 20,000, normal profit Rs. 5,000, calculate goodwill on the basis of 3 year purchase of super profit

(A) Rs. 40,000

(B) Rs. 60,000

(C) Rs. 50,000

(D) Rs. 45,000

Correct Answer

(D) Rs. 45,000

[#2697] If profits are $$frac{1}{4}$$ of cost, what is the share of profit in sales?

(A) $$frac{1}{3}$$

(B) $$frac{1}{4}$$

(C) $$frac{1}{5}$$

(D) $$frac{1}{6}$$

Correct Answer

(C) $$frac{1}{5}$$

[#2698] A and B share profits in the ratio of 7 : 3. They admitted C as a partner. A surrenders $${frac{1}{4}^{{ ext{th}}}}$$ of his share and B $${frac{1}{3}^{{ ext{rd}}}}$$ share to C. New profit sharing ratio among A, B and C would be:

(A) 6 : 2 : 1

(B) 6 : 2 : 2

(C) 12 : 6 : 7

(D) 21 : 8 : 11

Correct Answer

(D) 21 : 8 : 11

[#2699] A and B are partners sharing profit in the ratio of 2 : 3. They admit C for $${frac{1}{4}^{{ ext{th}}}}$$ share in the business. The sacrificing ratio of A and B is

(A) 3 : 1

(B) 1 : 4

(C) 2 : 3

(D) 1 : 1

Correct Answer

(C) 2 : 3

[#2700] The conversion of capital expenditure into revenue expenditure leads to which of the following result?

(A) Secret reserve

(B) Revenue expenditure

(C) Capital reserve

(D) None of the above

Correct Answer

(A) Secret reserve