[ISC] Q. 20 Goodwill Solution TS Grewal Class 12 (2026-27)
Solution to Question number 20 of the Goodwill chapter 2 TS Grewal Book ISC Board 2026-27 Edition.
Varuna and Karuna are partners for equal shares. They admit Lata into partnership for 1/4th share. It was agreed to value goodwill of the firm at 4 year’s purchase of super profit. Normal rate of return is 15% of the capital employed. Average profit of the firm is ₹ 4,00,000. Balance Sheet of the firm as at 31st March, 2024 was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Capital A/cs: Varuna Karuna Reserves and Surplus Sundry Creditors Outstanding Expenses Advances from Customers | 5,00,000 5,00,000 5,50,000 2,00,000 50,000 1,50,000 | Furniture Computers Electrical Fittings Investments (Trade) Stock Sundry Debtors Bills Receivable Cash at Bank Cash in Hand Deferred Revenue Expenditure Advertisement Suspense | 4,00,000 3,00,000 1,00,000 2,00,000 3,00,000 3,00,000 50,000 2,00,000 50,000 50,000 |
| 19,50,000 | 19,50,000 |
Calculate the value of goodwill.
Solution:-
