Super Profit – NBC Institute

FA – Nov 2020 – L1 – SA – Q7 – Partnership Accounts

Calculation of goodwill using average super profits for a partnership.

Question

The partnership of A, B, and C made a net profit for the past five years as shown below:

Year	Profit (N’000)
2014	30,000
2015	18,000
2016	9,000
2017	15,000
2018	21,000

The firm wishes to admit D, for this reason it has decided that the fair value of goodwill is 4 years purchase of the average super profits over the last 5 years. The normal profit is N6,000,000 per annum.

What is the value of goodwill?
A. N42,400
B. N46,400
C. N49,200
D. N50,400
E. N62,200

Answer

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Tags: Goodwill Valuation, Partnership Accounting, Super Profit
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2020

FA – May 2014 – L1 – SA – Q16 – Partnership Account

Calculates the goodwill value based on super profit over five years.

Question

The Partnership of X, Y, and Z made a net profit for the past five years as shown below:
Year Profit (₦’000)
2009 30,000
2010 18,000
2011 9,000
2012 15,000
2013 21,000

The firm intends to admit V into the business and for this purpose has decided to fair value goodwill at 4 years purchase of the average super profits over the last 5 years on a normal profit of ₦6,000,000 per annum.

What is the value of goodwill?
A. ₦42,400,000
B. ₦46,400,000
C. ₦49,200,000
D. ₦50,400,000
E. ₦62,200,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Goodwill, Partnership, Super Profit, Valuation
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2014

FA – Nov 2020 – L1 – SA – Q7 – Partnership Accounts

Calculation of goodwill using average super profits for a partnership.

Question

The partnership of A, B, and C made a net profit for the past five years as shown below:

Year	Profit (N’000)
2014	30,000
2015	18,000
2016	9,000
2017	15,000
2018	21,000

What is the value of goodwill?
A. N42,400
B. N46,400
C. N49,200
D. N50,400
E. N62,200

Answer

Find Related Questions by Tags, levels, etc.

Tags: Goodwill Valuation, Partnership Accounting, Super Profit
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2020

FA – May 2014 – L1 – SA – Q16 – Partnership Account

Calculates the goodwill value based on super profit over five years.

Question

The Partnership of X, Y, and Z made a net profit for the past five years as shown below:
Year Profit (₦’000)
2009 30,000
2010 18,000
2011 9,000
2012 15,000
2013 21,000

What is the value of goodwill?
A. ₦42,400,000
B. ₦46,400,000
C. ₦49,200,000
D. ₦50,400,000
E. ₦62,200,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Goodwill, Partnership, Super Profit, Valuation
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2014

Question Tag: Super Profit

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FA – Nov 2020 – L1 – SA – Q7 – Partnership Accounts

Calculation of goodwill using average super profits for a partnership.

FA – May 2014 – L1 – SA – Q16 – Partnership Account

Calculates the goodwill value based on super profit over five years.

FA – Nov 2020 – L1 – SA – Q7 – Partnership Accounts

Calculation of goodwill using average super profits for a partnership.

FA – May 2014 – L1 – SA – Q16 – Partnership Account

Calculates the goodwill value based on super profit over five years.

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FA – Nov 2020 – L1 – SA – Q7 – Partnership Accounts

Calculation of goodwill using average super profits for a partnership.

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FA – May 2014 – L1 – SA – Q16 – Partnership Account

Calculates the goodwill value based on super profit over five years.

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FA – Nov 2020 – L1 – SA – Q7 – Partnership Accounts

Calculation of goodwill using average super profits for a partnership.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q7 – Partnership Accounts"

FA – May 2014 – L1 – SA – Q16 – Partnership Account

Calculates the goodwill value based on super profit over five years.

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