[ISC] Q. 14 Goodwill Solution TS Grewal Class 12 (2026-27)

Solution to Question number 14 of the Goodwill chapter 2 TS Grewal Book ISC Board 2026-27 Edition.

A partnership firm earned net profits during the last three years ended 31st March, as follows: 2022 – ₹ 17,000; 2023 – ₹ 20,000; 2024 – ₹ 23,000.

Capital investment in the firm throughout the above mentioned period was ₹ 80,000. Having regard to the risk involved. 15% is considered to be a fair return on the capital. Calculate value of goodwill on the basis of two year’s purchase of average super profit earned during the above mentioned three years.

Solution:-