Solution of Q 8 Goodwill TS Grewal 2022-23 [CBSE]
Step-by-step solution of Question 8, Chapter 3 Goodwill: Nature and Valuation, TS Grewal Class 12 Accountancy 2022-23 for the CBSE Board.
Question 8
Madhu and Vidhi are partners sharing profits in the ratio of 3 : 2. They decided to admit Manu as a partner from 1st April, 2022 on the following terms:
- (i) Manu will be given 2/5th share of the profit.
- (ii) Goodwill of the firm will be valued at two years’ purchase of three years’ normal average profit of the firm.
Profits of the previous three years ended 31st March, were:
2022—Profit ₹ 30,000 (after debiting loss of stock by fire ₹ 40,000).
2021—Loss ₹ 80,000 (includes voluntary retirement compensation paid ₹ 1,10,000).
2020—Profit ₹ 1,10,000 (including a gain (profit) of ₹ 30,000 on the sale of fixed assets).
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.
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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