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

Chandan, Deepak and Elvish were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 2. Their Balance Sheet as at 31st March, 2024 stood as follows:

Balance Sheet of Chandan, Deepak and Elvish as at 31^st March, 2024

Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals:		Fixed Assets	27,00,000
Chandan	7,00,000	Stock	3,00,000
Deepak	5,00,000	Debtors	2,00,000
Elvish	3,00,000	Cash	1,00,000
General Reserve	4,50,000
Creditors	13,50,000
Total	33,00,000	Total	33,00,000

Chandan retired from the firm on 1st April, 2024 on the following terms:
[(i)] Fixed assets were to be depreciated by 10%.
[(ii)] Debtors of ₹ 30,000 were to be written off as bad debts.
[(iii)] Goodwill of the firm was valued at ₹ 6,00,000 and the retiring partner’s share is adjusted through the capital accounts of the remaining partners.
[(iv)] Chandan was paid through cash brought in by Deepak and Elvish in such a way so as to make their capitals proportionate to their new profit sharing ratio. Prepare Revaluation Account and Partners’ Capital Accounts.

The capital of the firm of Rajat and Karan is ₹ 15,00,000 and the market rate of interest is 12%. Annual salary of Rajat and Karan is ₹ 20,000 and ₹ 30,000 respectively. The profits for the last three years were ₹ 2,40,000, ₹ 2,80,000 and ₹ 3,20,000. Goodwill of the firm is to be valued on the basis of two years’ purchase of last three years’ average super profits. Calculate the goodwill of the firm.

The capital of the firm of Seema and Avi is ₹ 12,00,000 and the market rate of interest is 10%. Salary of each partner is ₹ 10,000 per annum. The profits for the last four years were ₹ 3,00,000, ₹ 4,00,000, ₹ 5,00,000 and ₹ 4,00,000 respectively. Goodwill of the firm is to be valued on the basis of three years purchase of last four years average super profits. Calculate the goodwill of the firm.

Neeru and Pooja were partners in a partnership firm sharing profits and losses in the ratio of 4 : 3. The firm earned average profits of \(₹ 5,00,000\) during the last few years. The normal rate of return in a similar business is 10%. The average super profits of the firm were \(₹ 4,00,000\). The amount of capital employed by the firm was:

Abha & Sara capital: ₹3L, ₹2L.
Profits: ₹60k, ₹90k, ₹1.2L
(i) 4 years purchase of avg. profits
(ii) Super profit capitalisation @10%

The capital of the firm of Sumit and Asha is ₹ 20,00,000 and the market rate of interest is 12%. Salary of each partner is ₹ 20,000 per annum.
The profits of the last three years were ₹ 3,00,000, ₹ 2,60,000 and ₹ 4,00,000 respectively.
Goodwill of the firm is to be valued on the basis of four years' purchase of last three years’ average super profits.
Calculate the goodwill of the firm.