[ISC] Q. 11 Solution of Goodwill TS Grewal ISC 2023-24 Edition
Step-by-step solution of Question 11, Chapter 2 Goodwill: Concepts and Mode of Valuation, TS Grewal Class 12 Accountancy 2023-24 for the ISC Board.
Question 11
Amitabh and Bachan are partners sharing profits and losses in the ratio of 5 : 3. On 1st April, 2023, Chaman is admitted to the partnership for 1/4th share of profits. For this purpose, goodwill is to be valued at two years’ purchase of last three years’ profits (after allowing partners’ remuneration). Profits to be weighted 1 : 2 : 3, the greatest weight being given to last year. Net profits before partners’ remuneration for the year ended 31st March, 2021, 2022 and 2023 were: ₹ 2,00,000; ₹ 2,30,000; and ₹ 2,50,000 respectively. The cost of managing the business is estimated to be ₹ 90,000 p.a. Calculate the amount of goodwill.
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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