[ISC] Q. 13 Solution of Goodwill TS Grewal ISC 2023-24 Edition
Step-by-step solution of Question 13, Chapter 2 Goodwill: Concepts and Mode of Valuation, TS Grewal Class 12 Accountancy 2023-24 for the ISC Board.
Question 13
Dinesh and Mahesh are partners sharing profits and losses in the ratio of 3 : 2. They admit Ramesh into partnership for 1/4th share in profits. Ramesh brings in his share of goodwill in cash. Goodwill for this purpose was calculated at two years’ purchase of the weighted average normal profit of past three years. Weights being assigned to each year were 2021–1; 2022–2 and 2023–3. Profits of the last three years were:
- 2021—Profit ₹ 50,000 (including profits on sale of assets ₹ 5,000).
- 2022—Loss ₹ 20,000 (including loss by fire ₹ 35,000).
- 2023—Profit ₹ 70,000 (including insurance claim received ₹ 18,000 and interest on investments and dividend received ₹ 8,000).
Calculate the value of goodwill. Also, calculate the goodwill brought in by Ramesh.
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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