[ISC] Q. 28 Goodwill Solution TS Grewal Class 12 (2026-27)

Solution to Question number 28 of the Goodwill chapter 2 TS Grewal Book ISC Board 2026-27 Edition.

From the following particulars, calculate value of goodwill of a firm by Capitalisation of Average Profit Method:

i) Profits of last five consecutive years ending 31st March, are: 2024 – ₹ 54,000; 2023 – ₹ 42,000; 2022 – ₹ 39,000; 2021 – ₹ 67,000 and 2020 – ₹ 59,000.

ii) Capitalisation rate 20%

iii) Net Assets of the firm ₹ 2,00,000.

Solution:-