BU Corporate Accounting Unit 3 VALUATION OF GOODWILL Imp Questions with Answers

Corporate Accounting is a special branch of accounting which deals with the accounting for companies , preparation of their final accounts and cash flow statements, analysis and interpretation of companies’s financial results and accounting for specific events like amalgamation, absorption, preparation of consolidated


1. What is goodwill?

It is the values attached to the super profit-earning capacity of the business organization arising from its good name, reputation, and wide connection.

2.State any two features of goodwill

a)Goodwill is an intangible asset
b)Goodwill is a real asset but not a fictitious asset

3. What do you mean by maintainable a profit?

Profits which are adjusted in the light of future possibilities are known as maintainable profits

4.Give the meaning of divisible profits.

Divisible profit refers to that type of profit available for distribution as dividend


5.State any Four Circumstances necessitating the valuation of goodwill.

1.When a sole trading concern is sold
2.When a sole trading concern is converted into  a partnership firm or a joint-stock company
3.on Admission/Retirement?death of partner
4.On External ReConstruction of a company


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