[ISC] Q. 6 Solution of Goodwill TS Grewal ISC 2023-24 Edition
Step-by-step solution of Question 6, Chapter 2 Goodwill: Concepts and Mode of Valuation, TS Grewal Class 12 Accountancy 2023-24 for the ISC Board.
Question 6
Naman and Aman are partners sharing profits in the ratio of 3 : 2. They decided to admit Raman as a partner from 1st April, 2023 on the following terms:
- (i) Raman will be given 2/5th share of the profit.
- (ii) Goodwill of the firm will be valued at two years’ purchase of three years’ normal average profit of the firm.
Profits of the previous three years ended 31st March, were:
- 2023—Profit ₹ 30,000 (after debiting loss of stock by fire ₹ 40,000).
- 2022—Loss ₹ 80,000 (includes voluntary retirement compensation paid ₹ 1,10,000).
- 2021—Profit ₹ 1,10,000 (including a gain (profit) of ₹ 30,000 on the sale of fixed assets).
You are required to value the goodwill.
Solution
All questions of Chapter 2
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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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