Solution of Q 14 Goodwill TS Grewal 2022-23 [CBSE]
Step-by-step solution of Question 14, Chapter 3 Goodwill: Nature and Valuation, TS Grewal Class 12 Accountancy 2022-23 for the CBSE Board.
Question 14
Raman and Daman are partners sharing profits in the ratio of 60 : 40 and for the last four years they have been getting annual salaries of ₹ 50,000 and ₹ 40,000 respectively. The annual accounts have shown the following net profit before charging partners’ salaries:
Year ended 31st March, 2020—₹ 1,40,000; 2021—₹ 1,01,000 and 2022—₹ 1,30,000.
On 1st April, 2022, Zeenu is admitted to the partnership for 1/4th share in profit (without any salary). Goodwill is to be valued at four years’ purchase of weighted average profit of last three years (after partners’ salaries); Profits to be weighted as 1, 2 and 3, the greatest weight being given to the last year. Calculate the value of Goodwill.
Solution
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About this solution
This is Chapter 3 Goodwill – Nature and Valuation of TS Grewal Edition 2022-23.
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.
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