List of top Accountancy Questions on Goodwill Valuation asked in CBSE CLASS XII

Uma and Veena were partners in a firm sharing profits and losses in the ratio of 4 : 5. On 1st April, 2024 they decided to admit Usha as a new partner for $\dfrac{1}{4}$ share in the profits of the firm. On Usha’s admission it was decided that the goodwill of the firm will be valued equal to the previous year’s profit. The profit for the year ended 31st March, 2024 was ₹5,76,000. However, to arrive at this profit, both the opening stock and closing stock were overvalued by ₹50,000. The goodwill of the firm will be:
Giri and Shyam were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their capitals were ₹1,60,000 and ₹1,00,000 respectively. Hema was admitted for $\dfrac{1}{5}$ share in the profits of the firm. Hema brought ₹1,50,000 as her capital. The goodwill of the firm on Hema’s admission was:
There are two statements:
Statement I: The balance in the Statement of Profit and Loss in the Balance Sheet of Samta Ltd. showed a deficit of \rupee2,00,000 on 31.03.2023 and a surplus of \rupee3,00,000 on 31.03.2024. \rupee5,00,000 will be considered as profit earned during the year for preparing Cash Flow Statement.
Statement II: On 31.03.2023 the goodwill account of Zeeta Ltd. showed a balance of \rupee4,00,000 and on 31.03.2024 it showed a balance of \rupee5,00,000. \rupee1,00,000 will be considered as goodwill acquired during the year for the preparation of Cash Flow Statement.
Choose the correct option from the following:

Asha, Ashish and Naman were partners in a firm sharing profits and losses in the ratio of 2 : 5 : 3. The firm closes its books on 31st March every year. On 31st December, 2024 Ashish died. On the date of his death, there was a balance of ₹3,00,000 in his capital account and ₹2,00,000 in General Reserve.
The partnership deed provided that on the death of a partner, his representatives will be entitled to the following: 
(i) Balance in the capital account and interest on the same @ 10% p.a.
(ii) His share in the goodwill of the firm. The goodwill of the firm on Ashish’s death was valued at ₹6,00,000.
(iii) His share in the profits of the firm to be calculated on the basis of previous year’s profit. The profit of the firm for the year ended 31st March, 2024 was ₹3,60,000.
Prepare Ashish’s Capital Account to be presented to his executors. 

Mita and Vihaan were partners in a firm sharing profits and losses in the ratio of 3:2.

On 31st March, 2024 their Balance Sheet was as follows:

Balance Sheet of Mita and Vihaan as at 31st March, 2024

LiabilitiesAmount (₹)AssetsAmount (₹)
Sundry Creditors2,00,000Cash50,000
Capitals: Sundry Debtors2,00,000
Mita4,00,000Less: Provision for Doubtful Debts(7,000)
Vihaan3,00,000 1,93,000
  Stock2,50,000
  Plant and Machinery3,50,000
  Patents57,000
Total9,00,000Total9,00,000

On the above date, Zen was admitted as a new partner for 4/15 share in the profits on the following terms:

  1. Zen will bring ₹3,00,000 as his capital and his share of goodwill premium in cash. On Zen’s admission, goodwill of the firm was valued at ₹4,12,500.
  2. The provision for bad debts will be maintained at 5% of the debtors.
  3. Stock will be valued at ₹2,00,000, plant and machinery at ₹4,00,000 and patents at ₹1,20,000.
  4. There was a bill of ₹30,000 for goods purchased which was omitted from the books.

Pass necessary journal entries for the above transactions in the books of the firm on Zen’s admission

Jeevan and Kavi were partners in a firm with capitals of ₹12,00,000 and ₹15,00,000 respectively. Annual salary of the partners was ₹2,00,000 each. The market rate of interest was 10%. During the previous three years the profits were ₹8,00,000, ₹9,00,000 and ₹7,00,000. The goodwill of the firm is to be valued at 2 years’ purchase of the last 3 years’ average super profits.
Calculate the goodwill of the firm.