[ISC] Q. 19 Goodwill Solution TS Grewal Class 12 (2026-27)
Solution to Question number 19 of the Goodwill chapter 2 TS Grewal Book ISC Board 2026-27 Edition.
Ideal Marketing earned an average profit of ₹ 4,00,000 during the last five years. Normal rate of return on capital employed is 10%. Balance Sheet of the firm as at 31st March, 2024 was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Capital A/cs: Shyam Sunder Current A/cs: Shyam Sunder Reserves Sundry Creditors Bills Payable Outstanding Expenses | 5,00,000 5,00,000 2,00,000 2,00,000 3,40,000 4,00,000 1,00,000 60,000 | Land and Building Furniture Investments Sundry Debtors Bills Receivable Closing Stock Cash in Bank Cash in Han | 10,00,000 2,00,000 1,00,000 5,00,000 50,000 3,00,000 1,00,000 50,000 |
| 23,00,000 | 23,00,000 |
Calculate the value of goodwill, if it is valued at three year’s purchase of Super Profits.
Solution:-
