Question

explain the reason for valuation of goodwill​

Answer 1

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• Goodwill is an intangible asset that arises as a result of the acquisition of one company by another for a premium value.

• The value of a company's brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary represent goodwill.

Answer 2

First of all goodwill is the value of any firm , organisation etc.
Goodwill is valued at following purposes—-
1. Enterance of a new partner
2. Retirement or death of partner
3. Or on dissolution time

Goodwill is valued at any point mentioned above for making the adjustment of it.
Like at the time of admission of partner new partner has to pay for the goodwill which was created by the old partners.
If the partner is unable to make paymentvin cash or from bank then it may be adjusted from his/ her capital.