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Goodwill Questions

Practice 34 Goodwill questions with detailed answers and explanations. Free MCQs, PYQs, and mock test questions for NEET, JEE, GATE, SSC and more.

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13
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Practice by Exam:Accountancy(23)CUET Accountancy(11)

About Goodwill — practice questions, PYQs & concepts

Goodwill is a frequently-tested topic on Accountancy, CUET Accountancy. ExamTest.live currently lists 34 Goodwill questions spanning previous-year papers from 2026 to 2026, each with worked solutions and a step-by-step explanation. Use the filters on this page to focus on a specific exam, difficulty level or year — every answer key is free, no sign-up required.

Goodwill weight in competitive exams

Across our Goodwill question bank, the largest sources are Accountancy (23) and CUET Accountancy (11). Click any exam chip above to drill down to that exam-specific question set.

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All Goodwill Questions(1–34 of 34)

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Q1mediummcqAccountancyCUET Accountancy 2022 15 July Shift 22026
0% accuracy
P, Q & R were partners sharing profit in the ratio . W was admitted to the partnership, bringing capital and as his share of Goodwill. Choose the correct entry for retaining of Goodwill brought in by W. W's share in profit was .
Q2mediummcqAccountancyCUET Accountancy 2022 15 July Shift 22026
0% accuracy
A, B and C are partners in a firm sharing profits in the ratio . B retires and on the day of his retirement Goodwill existed in the books at . B's Capital A/c will be debited by:
Q3mediummcqAccountancyCUET Accountancy2026
Which of the following is NOT a valid method for the valuation of goodwill?
Q4easymcqAccountancyCUET Accountancy 2025 3 June Shift 22026
P, Q and R share profits equally. At the time of P's retirement, goodwill appears in the books at . P will be credited with what amount for his Goodwill share?
Q5mediummcqAccountancyCUET Accountancy 2025 27 May Shift 22026
Which of the following statements are correct in respect of goodwill?(A) The present value of a firm's anticipated excess earnings.(B) The capitalised value attached to the differential profit capacity of a business.(C) Goodwill exists only when the firm earns super profits.(D) Any firm that earns normal profits or is incurring losses also has goodwill.Choose the correct answer from the options given below:
Q6mediummcqAccountancyCUET Accountancy 2025 27 May Shift 22026
K, N and P are partners sharing profits and losses in the ratio of . N retires and the goodwill is valued at Rs. . K and P decided to share future profits and losses in the ratio of . Identify the correct journal entry in this scenario.
Q7easymcqAccountancyCUET Accountancy 2025 27 May Shift 22026
Which of the following is NOT a method of valuation of goodwill?
Q8easymcqAccountancyCUET Accountancy 2025 27 May Shift 22026
The profit for the five years of a firm are as follows:YearProfit (Rs.)20134,00,00020143,98,00020154,50,00020164,45,00020175,00,000Calculate the goodwill of the firm on the basis of 4 years purchase of 5 years average profits.
Q9mediummcqAccountancyCUET Accountancy 2025 27 May Shift 22026
Identify the steps involved in calculating goodwill under the capitalized value of average profits method:(A) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalized value of average profits(B) Ascertain the average profits based on the past few years' performance(C) Compute the value of goodwill by deducting net assets from the capitalized value of average profits(D) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets)Choose the correct answer from the options given below:
Q10easymcqAccountancyCUET Accountancy 2025 27 May Shift 22026
Under which method is the goodwill valued at an agreed number of years' purchase of the average profits of the past few years?
Q11easymcqAccountancyCUET Accountancy 2025 27 May Shift 22026
A, B and C are partners in a firm. If C retires/dies, his capital account is credited with:
Q12mediummcqAccountancyCUET Accountancy 2025 27 May Shift 22026
Identify the steps involved in calculating goodwill under the capitalization of super profits method:(A) Calculate capital of the firm, which is equal to total assets (excluding goodwill and fictitious assets) minus outside liabilities(B) Multiply the super profits by the required rate of return multiplier(C) Calculate normal profits on capital employed(D) Calculate super profits by deducting normal profits from average profits(E) Calculate average profit for past yearsChoose the correct answer from the options given below:
Q13easymcqAccountancyCUET Accountancy 2025 27 May Shift 22026
What are the main factors affecting the value of goodwill?(A) Nature of business(B) Location(C) Efficiency of management(D) Market situationChoose the correct answer from the options given below:
Q14easymcqAccountancyCUET Accountancy 2025 27 May Shift 22026
________ is the value of the reputation of a firm in respect of the profits expected in future over and above the normal profits.
Q15easymcqCUET AccountancyCUET 2025 31 May Shift 12026
Select the factors affecting the value of goodwill-(A) Nature of business.(B) Efficiency of management.(C) Location.(D) Prices.Choose the correct answer from the options given below:
Q16mediummcqCUET AccountancyCUET Accountancy 2025 2 June Shift 22026
Match List-I with List-II:List-I (Types of goodwill)List-II (Treatment to be done)(A) Existing Goodwill(I) No entry passed.(B) Goodwill premium(II) Inferred from the capital arrangement.(C) Goodwill paid privately(III) Written off.(D) Hidden goodwill(IV) Credited to sacrificing partner.Choose the correct answer from the options given below:
Q17easymcqCUET AccountancyCUET Accountancy 2025 2 June Shift 22026
To secure the right to receive a share in the future profits of a partnership firm, a newly admitted partner must bring:
Q18mediummcqCUET AccountancyCUET Accountancy 16 July Shift 22026
Arrange the following steps to calculate the value of Goodwill by the capitalization method of super profit in a proper sequence:A. Calculate normal profit on capital employedB. Actual Profits - Normal Profits = Super ProfitC. D. Calculate actual profits on capital employedChoose the correct answer from the given options:
Q19easymcqAccountancyCUET Accountancy 2025 22 May Shift 22026
Arrange the steps in proper sequence to calculate Goodwill through the Super Profits Method.(A) Calculate the normal profit on the firm's capital on the basis of the normal rate of return.(B) Calculate the average profit.(C) Calculate the super profits by deducting normal profit from the average profits.(D) Multiply super profits by the given number of years purchased.Choose the correct answer from the options given below:
Q20mediummcqAccountancyCUET Accountancy 2025 22 May Shift 22026
L and M are partners sharing profits in the ratio . N is admitted as a partner for of the share which is acquired entirely from L. Goodwill of the firm is valued at on N's admission. N will have to pay for Goodwill:
Q21easymcqAccountancyCUET Accountancy 2025 22 May Shift 22026
The past average profits of a business work out at and it is expected that such profits are likely to continue for another three years. The value of goodwill based on the average profit method will be _________.
Q22easymcqAccountancyCUET Accountancy 2025 22 May Shift 12026
G, H and P are partners. On retirement of G, the goodwill already appears in the Balance Sheet at . The goodwill will be written-off:
Q23easymcqAccountancyCUET Accountancy 2025 22 May Shift 12026
Which of the following factors affects the value of goodwill?(A) Location of Business
(B) Partners Performance
(C) Nature of Business
(D) Market SituationChoose the correct answer from the options given below:
Q24easymcqCUET AccountancyCUET Accountancy 2025 16 May Shift 12026
There is a practical need for the valuation of a firm's goodwill under which of the following cases?(A) Admission of a new partner(B) Retirement of an existing partner(C) Dissolution of a firm involving the sale of the business as a going concern(D) Amalgamation of partnership firmsChoose the correct answer from the options given below:
Q25easymcqCUET AccountancyCUET Accountancy 2025 16 May Shift 12026
Accounting principles classify Goodwill as a/an:
Q26easymcqCUET AccountancyCUET Accountancy 2025 16 May Shift 12026
Valuation of goodwill is NOT required in which of the following scenarios?
Q27easymcqCUET AccountancyCUET Accountancy 2025 16 May Shift 12026
At the time of a firm's reconstitution, any existing asset balance of Goodwill already appearing in the books of accounts must be immediately written off among partners in their:
Q28easymcqCUET AccountancyCUET Accountancy 2025 16 May Shift 12026
Under which method is the "Number of Years' Purchase" not considered for goodwill valuation?
Q29easymcqCUET AccountancyCUET Accountancy 2025 16 May Shift 12026
Which of the below-mentioned methods are considered while valuing goodwill?(A) Average Profits Method(B) Super Profits Method(C) Piecemeal Distribution Method(D) Capitalization MethodChoose the correct answer from the options given below:
Q30easymcqCUET AccountancyCUET Accountancy 2025 15 May Shift 12026
Which of the following is not the main factors affecting the value of Goodwill?
Q31easymcqAccountancyCUET Accountancy 2025 14 May Shift 22026
The profits for the five years of a firm are as follows:Year 2013: Year 2014: Year 2015: Year 2016: Year 2017: The goodwill of the firm on the basis of years' purchase of years' average profits is:
Q32mediummcqAccountancyCUET Accountancy 2025 14 May Shift 22026
Hanny, Pammy, and Sunny are partners sharing profits in the ratio of . Goodwill is appearing in the books at a value of . Pammy retires and at the time of Pammy's retirement, goodwill is valued at . Hanny and Sunny decided to share future profits in the ratio of . Pammy's share of the current value of goodwill is:
Q33mediummcqAccountancyCUET UG 2024 Accountancy Question Paper (17-May-2024) (Shift 3)2026
The journal entry for treatment of goodwill, when a new partner brings his share of goodwill in cash and one of the old partners gains, involves the following:(A) Gaining Partner’s Capital Account is debited(B) Premium for Goodwill Account is debited(C) Sacrificing Partner’s Capital Account is credited(D) Gaining Partner’s Capital Account is credited Choose the correct answer from the options given below:
Q34mediummcqAccountancyCUET Accountancy 2023 11 June Shift 32026
Hidden Goodwill is:

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