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Chapter No. 3 – Partnership Accounts – II Goodwill: Nature and Valuation- USHA Publication Class +2 – Solution

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Goodwill is the value of a company or firm in the eyes of the customer. If any business has more market share then it will have a higher value of goodwill. 

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What is Goodwill: –

When one business acquired a whole or some percentage of a share of another business for the amount which is more than the total assets of that business. That amount of difference which is paid extra is known as goodwill. It is a tangible asset. 

Now question is that why business pay extra from the total value of the assets of the business?

There are many reasons for that but some of the important ones are shown as under:

  • Higher market share 
  • More customer reliability
  • Satisfied employees 
  • or have a proprietary technology

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In partnership, when a new partner wants to enter into the business the old partners who are going to sacrifice their share of profit in the business for his share, want some amount for the hard work done by them in past to make a profitable business, this amount is treated as goodwill. It is calculated on the basis of the previous year’s profits and losses(if any).

Check out the full article: –

What is Goodwill -Definitions and Factors affecting its value

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)- USHA Publication Class +2 – Solution

Question-wise solutions of the all Questions of Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)- USHA Publication Class +2 – Solutions are shown below: –

Question 01 Chapter 3 of +2- Part-
Question 01 Chapter 3 of +2-Part-1 Average Profit Method 1.  Rana and Soun are sharing profits 11:9 ratio. Their goodwill ...
Question 02 Chapter 3 of +2- Part-
Question 02 Chapter 3 of +2-Part-1 2. (Average Profit Method) Partner X is admitted in the firm of A and ...
Question 03 Chapter 3 of +2- Part-
Question 03 Chapter 3 of +2-Part-1 3. (Average Profit Method) Calculate goodwill at two years of purchase of average profits ...

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Question 04 Chapter 3 of +2- Part-
Question 04 Chapter 3 of +2-Part-1 4. (Average Profit Method) Rani purchased Vani’s business on 31st March 2015. The profit ...
Question 05 Chapter 3 of +2- Part-
Question 05 Chapter 3 of +2-Part-1 5. (Average Profit Method) Goodwill is to be valued at two years purchase of ...
Question 06 Chapter 3 of +2- Part-
Question 06 Chapter 3 of +2-Part-1 6. (Calculate goodwill when partners capital are given) A firm of partner A, B ...
Question 07 Chapter 3 of +2- Part-
Question 07 Chapter 3 of +2-Part-1 7. (Profit & Loss on fixed asset are given) In a firm of partners ...
Question 08 Chapter 3 of +2-Part-1 8. (Weighted Average Profit Method) The profits of Ram Mills for the last five ...

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Question 09 Chapter 3 of +2- Part-
Question 09 Chapter 3 of +2-Part-1 9. (Weighted Average Profit Method) Calculate the value of goodwill of a firm on ...
Question 10 Chapter 3 of +2- Part-
Question 10 Chapter 3 of +2-Part-1 10. (Super Profit Method) A partnership firm earned net profits during the last three ...
Question 11 Chapter 3 of +2- Part-
Question 11 Chapter 3 of +2- Usha 11. (Super Profit Method) A firm earned net profit during the last five ...
Question 12 Chapter 3 of +2- Part-
Question 12 Chapter 3 of +2-Part-1 12. (Super Profit Method) A firm has total assets of Rs.2,50,000 including cash of ...

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Question 13 Chapter 3 of +2- Part-
Question 13 Chapter 3 of +2-Part-1 13. (Super Profit Method) X and Y have capital of Rs.1,00,000 and Rs.60,000.The reserve ...
Question 14 Chapter 3 of +2- Part-
Question 14 Chapter 3 of +2-Part-1 14. (Super Profit Method) Calculate goodwill at two years purchase of super-profits. Normal rate ...
Question 15 Chapter 3 of +2- Part-
Question 15 Chapter 3 of +2-Part-1 15. (Capitalisation Method) The average net profits expected in future by Ram Gopal and ...
Question 16 Chapter 3 of +2- Part-
Question 16 Chapter 3 of +2-Part-1 16. (Capitalisation Method) A firm earns Rs.1,00,000 as its annual profits, the rate of ...
Question 17 Chapter 3 of +2- Part-
Question 17 Chapter 3 of +2-Part-1 17. (Capitalisation Method) The average net profits expected in future by Ram Gopal and ...

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Question 18 Chapter 3 of +2- Part-
Question 18 Chapter 3 of +2-Part-1 18. (Capitalisation of super profit) The assets of a firm are Rs.26,000 and liabilities ...
Question 19 Chapter 3 of +2- Part-
Question 19 Chapter 3 of +2-Part-1 18. (Avg Profit/ Super Profit/Capitalisation method) The following information relates to a partnership firm: ...
Question 20 Chapter 3 of +2- Part-
Question 20 Chapter 3 of +2-Part-1 20. (Super Profit/Capitalisation method) A firm earns a profit of Rs.5,000 per year. The ...
Question 22 Chapter 3 of +2 Part-1 - USHA Publication 12 Class Part - 1
Question 22 Chapter 3 of USHA Publication 12 Class Part - 1 22. (Super Profit Method) A partnership firm earned ...

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Question 24 Chapter 3 of +2 Part-1 - USHA Publication 12 Class Part - 1
Question 24 Chapter 3 of USHA Publication 12 Class Part - 1 24. (Calculation of Super Profits and Average Profits ...
Question 25 Chapter 3 of +2 Part-1 - USHA Publication 12 Class Part - 1
Question 25 Chapter 3 of USHA Publication 12 Class Part - 1 25. (Average Profits Method/When profits are given) B ...
Question 26 Chapter 3 of +2 Part-1 - USHA Publication 12 Class Part - 1
Question 26 Chapter 3 of USHA Publication 12 Class Part - 1 26. (Capitalisation of S.P./S.P. Method) A business has ...

 

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