[ISC] Q. 11 Goodwill Solution TS Grewal Class 12 (2026-27)
Solution to Question number 11 of the Goodwill chapter 2 TS Grewal Book ISC Board 2026-27 Edition.
Calculate Goodwill of a firm on the basis of three years’ purchase of the Weighted Average Profits of the last four years. The profits of the last four years were:
| Year (ending 31st March) | Amount () |
| 2023 | 2,80,000 |
| 2024 | 2,70,000 |
| 2025 | 4,69,000 |
| 2026 | 5,38,100 |
(a) On 1st April, 2023, a major plant upgrade was undertaken for1,00,000 which was charged to revenue. The said sum is to be capitalised for goodwill calculation subject to adjustment of depreciation of 10% on reducing balance method.
(b) For the purpose of calculating goodwill, the company decided that the years ending 31st March, 2023 and 31st March, 2024 be weighted as 1 each (being COVID affected) and for the years ending 31st March, 2025 and 31st March, 2026 weights be taken as 2 and 3 respectively.
Solution:-
