[ISC] Q. 18 Solution of Admission of Partner TS Grewal ISC 2023-24 Edition
Step-by-step solution of Question 18, Chapter 3 Admission of a Partner, TS Grewal Class 12 Accountancy 2023-24 for the ISC Board.
Question 18
Veena and Soma are partners in a firm. They admit Sara on 1st April, 2022, for 1/4 share in the profits of the firm. On an average, the profits earned by Veena and Soma are ₹ 21,000. The average capital employed by the firm is ₹ 1,50,000. The normal rate of return in the industry is 10%. It is decided to value goodwill on the basis of four years’ purchase of profits in excess of profits @ 10% on the money invested.
You are required to:
- (i) Calculate the goodwill of the firm.
- (ii) Pass the Journal entries in the books of the firm if Sara brings into the firm her share of goodwill in cash.
Solution
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About this solution
This is Chapter 3 Admission of a Partner 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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