# [ISC] Q. 18 Solution of Admission of Partner TS Grewal Accounts Class 12 (2024-25)

Share your love

Solution to Question number 18 of the Admission of partner chapter 3 of TS Grewal Book 2024-25 Edition ISC/CISCE Board.

Veena and Soma are partners in a firm. They admit Sara on 1st April, 2022 for 1/4th share in the profits of the firm. On an average, the profits earned by Veena and Soma are ₹ 21,000. The average capital employed by the firm is ₹ 1,50,000. The normal rate of return in the industry is 10%. It is decided to value goodwill on the basis of four year’s purchase of profits in excess of profits @ 10% on the money invested. You are required to:

i) Calculate the goodwill of the firm.

ii) Pass the Journal entries in the books of the firm if Sara brings into the firm her share of goodwill in cash.

Solution:-

Share your love
##### Anurag Pathak

Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his Youtube channel for free lectures

Articles: 6604