Valuation of Goodwill is an essential concept in Commerce that refers to the monetary value of a business's reputation and customer base. The following are the solutions to the Goodwill question:

1. Definition of Goodwill: Goodwill is the intangible asset that represents the reputation and customer base of the business. It is the difference between the purchase price of a business and the fair market value of its assets.

2. Factors affecting Goodwill: The value of goodwill depends on various factors such as the business's reputation, customer base, location, market share, and brand recognition.

3. Methods of Valuation: There are different methods to value goodwill, such as the excess earnings method, the capitalization of earnings method, and the discounted cash flow method.

4. Excess Earnings Method: This method calculates the value of goodwill by estimating the earnings above the normal rate of return on the net tangible assets of the business.

5. Capitalization of Earnings Method: This method estimates the future earnings of the business and then capitalizes these earnings to arrive at the value of goodwill.

6. Discounted Cash Flow Method: This method estimates the future cash flows of the business and then discounts them to their present value.

7. Importance of Goodwill Valuation: Goodwill valuation is crucial for various reasons such as mergers and acquisitions, partnership dissolution, and financial reporting.

In conclusion, Goodwill Valuation is a crucial concept in Commerce that helps businesses and investors understand the value of a business's reputation and customer base. It is essential to use the appropriate valuation method to arrive at an accurate value of goodwill.

Goodwill are of two types self generated and purchase goodwill and according to as 26 on purchase goodwill will recorded in the books of accounts