[ISC] Q. 4 Goodwill Solution TS Grewal Class 12 (2026-27)

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Solution to Question number 4 of the Goodwill chapter 2 TS Grewal Book ISC Board 2026-27 Edition.

Calculate Goodwill of the firm on the basis of two years’ purchase of the average profit of last four years. Profits for last four years ended 31st March, were:

Year (Ended 31st March)Profit (₹)
20233,06,000
20244,84,000
20254,66,000
20263,44,000

Additional Information:
(a) Closing Stock for the year ended 31st March, 2025 was undervalued by 26,000.

(b) Cost of management expenses per annum * 20,000 should be made for the purpose of goodwill valuation.

Solution:-

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