Solution of Q 21 Goodwill TS Grewal 2022-23 [CBSE]
Step-by-step solution of Question 21, Chapter 3 Goodwill: Nature and Valuation, TS Grewal Class 12 Accountancy 2022-23 for the CBSE Board.
Question 21
On 1st April, 2022, an existing firm had assets of ₹ 75,000 including cash of ₹ 5,000. Its creditors amounted to ₹ 5,000 on that date. The firm had a Reserve of ₹ 10,000 while Partners’ Capital Accounts showed a balance of ₹ 60,000. If Normal Rate of Return is 20% and goodwill of the firm is valued at ₹ 24,000 at four years’ purchase of super profit, find average profit per year of the existing firm.

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.
Also, we have followed the proper format and workings which are required as per CBSE Guidelines. Just follow our presentation of solutions and score good marks in Accountancy Board Exam.


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