[ISC] Q. 27 Solution of Goodwill TS Grewal ISC 2023-24 Edition
Step-by-step solution of Question 27, Chapter 2 Goodwill: Concepts and Mode of Valuation, TS Grewal Class 12 Accountancy 2023-24 for the ISC Board.
Question 27
Ayub and Amit are partners in a firm and they admit Jaspal into partnership w.e.f. 1st April, 2023. They agreed to value goodwill at 3 years’ purchase by Super Profit Method for which they decided to average profit of last 5 years. The profits for the last 5 years were:
- 31st March, 2019 — ₹ 1,50,000;
- 31st March, 2020 — ₹ 1,80,000;
- 31st March, 2021 — ₹ 1,00,000 (Including abnormal loss of ₹ 1,00,000);
- 31st March, 2022 — ₹ 2,60,000 (Including abnormal gain (profit) of ₹ 40,000);
- 31st March, 2023 — ₹ 2,40,000.
The firm has total assets of ₹ 20,00,000 and Outside Liabilities of ₹ 5,00,000 as on that date. Normal Rate of Return in similar business is 10%.
Calculate value 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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