Question

What is the need for valuation of goodwill? (no G00gle ans) ​

Answer 1

Answer:

Need For Valuation of Goodwill :

The need for valuation of goodwill arises at the time of sale of business.

The circumstances are :

• Change in Profit Sharing Ratio Among

the existing Partners

• Admission of New Partner

• Retirement Of Partner

• Death of a Partner

• Dissolution of a firm

• Amalgamation of Partnership Firms

Goodwill :

Goodwill is one of the special aspects of Partnership accounts which requires adjustment at the time of reconstitution of a Firm.

Methods of Valuation Of Goodwill :

• Average Profits Method

• Super Profits Method

• Capitalisation Method