[CBSE] DK Goel Q. 10 Change in Profit Sharing Ratio Solutions Class 12 (2026-27)
Solution of Question 10 of Change in Profit sharing ratio DK Goel Class 12 CBSE (2026-27)
Calculate the value of goodwill on the basis of three year’s purchase of the weighted average profits of the last five years. Profits to be weighted 1, 2, 3, 4 and 5, the greatest weightage to be given to last year. Profits of the last five years were :
| Year | Profits | |
| 2019 | 80,000 | |
| 2020 | 1,05,000 | (after considering abnormal loss of ₹ 41,500) |
| 2021 | (20,000) | (after considering abnormal gain of ₹ 40,000) |
| 2022 | 1,80,000 | |
| 2023 | 2,00,000 |
Books of Accounts of the firm revealed that:
(I) Closing stock as on 31st March, 2019 was overvalued by ₹ 40,000.
(ii) Repairs to Machinery ₹ 60,000 were wrongly debited to Machinery Account on 1st July, 2021. Depreciation was charged on Machinery @ 20% p.a. on diminishing balance method.
[Ans. Value of Goodwill ₹ 3,60,000.]
Solution:-
