[ISC] Q. 5 Solution of Goodwill TS Grewal ISC 2023-24 Edition
Step-by-step solution of Question 5, Chapter 2 Goodwill: Concepts and Mode of Valuation, TS Grewal Class 12 Accountancy 2023-24 for the ISC Board.
Question 5
Abhay, Babu and Charu are partners sharing profits and losses equally. They agree to admit Daman for equal share of profit. For this purpose, the value of goodwill is to be calculated on the basis of four years’ purchase of average profit of last five years. These profits for the year ended 31st March, were:
- 2019 — ₹ 1,50,000; 2020 — ₹ 3,50,000; 2021 — ₹ 5,00,000; 2022 — ₹ 7,10,000; 2023 — ₹ (5,90,000) (Loss)
On 1st April, 2022, a car was purchased for ₹ 1,00,000 and was wrongly debited to Travelling Expenses Account. Depreciation is to be charged @ 25%. Interest of ₹ 10,000 on Non-trade Investments is credit to Income for the year ended 31st March, 2022 and 2023.
Calculate the value of goodwill after adjusting the above.
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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