[ISC] Q. 4 Solution of Goodwill TS Grewal ISC 2023-24 Edition
Step-by-step solution of Question 4, Chapter 2 Goodwill: Concepts and Mode of Valuation, TS Grewal Class 12 Accountancy 2023-24 for the ISC Board.
Question 4
Divya purchased Jyoti’s business on 1st April, 2023. Profits shown by Jyoti’s business for the last three financial years were:
- 2020–21 : ₹ 1,00,000 (including profit on sale of machine (abnormal gain) of ₹ 12,500).
- 2021–22 : ₹ 1,25,000 (after charging loss of stock by fire (abnormal loss) of ₹ 25,000).
- 2022–23 : ₹ 1,12,500 (excluding ₹ 12,500 as insurance premium on firm’s property, now to be insured).
Calculate the value of firm’s goodwill on the basis of two years’ purchase of the average profit of the last three years.
Solution
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About this solution
This is Chapter 2 Goodwill of ISC TS Grewal Edition 2023-24.
Written by Vijay Adarsh, teaching commerce since 2003 to Class 11, Class 12, B.Com, CA, CS and CMA students.
We have solved all the practical questions in this book and explained them Step by Step in detail with clear working notes.
Also, we have followed the proper format and workings which are required as per Guidelines Issued by the ISC Council. Just follow our presentation of solutions and score good marks in Accountancy Exam.
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