List of top Accountancy Questions on Goodwill asked in PSEB XII

Write any two factors affecting Goodwill.

Define Goodwill.

Under which method of valuation of Goodwill, normal rate of return is not required?

X and Y were partners in a firm. They admitted Z as a new partner for 20% share in the profits. After all adjustments regarding general reserve, Goodwill, gain or loss on revaluation, the balances in capital accounts of X and Y were ₹2,50,000 and ₹3,50,000 respectively. Z brought proportionate capital so as to give him 20% share in the profits. Calculate the amount of capital to be brought by Z.

L, M, and N were partners in a firm sharing profits in 3:2:1 ratio. The firm closes its books on 31st March every year. M died on 12.06.2024. On M’s death the Goodwill of the firm was valued at ₹1,80,000. On M’s death his share in the profits till the time of his death was to be calculated on the basis of previous year’s profit which was ₹3,00,000. Calculate M’s share in the profit of the firm. Pass necessary journal entries for the treatment of Goodwill and M’s share of profit at the time of his death.

Write any two factors affecting Goodwill.

Define Goodwill.

Under which method of valuation of Goodwill, normal rate of return is not required?