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

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. 

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

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-1 – USHA Publication 12 Class Part – 1

Question 01 Chapter 3 of +2-Part-1 Average Profit Method 1.  Rana and Soun are sharing profits 11:9 ratio. Their goodwill ...

Show Full Solution

Question 02 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 02 Chapter 3 of +2-Part-1 2. (Average Profit Method) Partner X is admitted in the firm of A and ...

Show Full Solution

Question 03 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 03 Chapter 3 of +2-Part-1 3. (Average Profit Method) Calculate goodwill at two years of purchase of average profits ...

Show Full Solution

Question 04 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 04 Chapter 3 of +2-Part-1 4. (Average Profit Method) Rani purchased Vani’s business on 31st March 2015. The profit ...

Show Full Solution

Question 05 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 05 Chapter 3 of +2-Part-1 5. (Average Profit Method) Goodwill is to be valued at two years purchase of ...

Show Full Solution

Question 06 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 06 Chapter 3 of +2-Part-1 6. (Calculate goodwill when partners capital are given) A firm of partner A, B ...

Show Full Solution

Question 07 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 07 Chapter 3 of +2-Part-1 7. (Profit & Loss on fixed asset are given) In a firm of partners ...

Show Full Solution

Question 08 Chapter 3 of USHA Publication 12 Class Part – 1

Advertisement-Y

Question 08 Chapter 3 of +2-Part-1 8. (Weighted Average Profit Method) The profits of Ram Mills for the last five ...

Show Full Solution

Question 09 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 09 Chapter 3 of +2-Part-1 9. (Weighted Average Profit Method) Calculate the value of goodwill of a firm on ...

Show Full Solution

Question 10 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 10 Chapter 3 of +2-Part-1 10. (Super Profit Method) A partnership firm earned net profits during the last three ...

Show Full Solution

Question 11 Chapter 3 of +2 – USHA Publication 12 Class Part – 1

Question 11 Chapter 3 of +2- Usha 11. (Super Profit Method) A firm earned net profit during the last five ...

Show Full Solution

Question 12 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

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 ...

Show Full Solution

Question 13 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

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 ...

Show Full Solution

Question 14 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 14 Chapter 3 of +2-Part-1 14. (Super Profit Method) Calculate goodwill at two years purchase of super-profits. Normal rate ...

Show Full Solution

Question 15 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 15 Chapter 3 of +2-Part-1 15. (Capitalisation Method) The average net profits expected in future by Ram Gopal and ...

Show Full Solution

Advertisement-Y

Question 16 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

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 ...

Show Full Solution

Question 17 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 17 Chapter 3 of +2-Part-1 17. (Capitalisation Method) The average net profits expected in future by Ram Gopal and ...

Show Full Solution

Question 18 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 18 Chapter 3 of +2-Part-1 18. (Capitalisation of super profit) The assets of a firm are Rs.26,000 and liabilities ...

Show Full Solution

Question 19 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 19 Chapter 3 of +2-Part-1 18. (Avg Profit/ Super Profit/Capitalisation method) The following information relates to a partnership firm: ...

Show Full Solution

Question 20 Chapter 3 of +2 Part-1 – USHA Publication 12 Class Part – 1

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 ...

Show Full Solution

Question 22 Chapter 3 of 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 ...

Show Full Solution

Question 24 Chapter 3 of 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 ...

Show Full Solution

Question 25 Chapter 3 of USHA Publication 12 Class Part – 1

Advertisement-Y

Question 25 Chapter 3 of USHA Publication 12 Class Part - 1 25. (Average Profits Method/When profits are given) B ...

Show Full Solution

Question 26 Chapter 3 of 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 ...

Show Full Solution