Class 12th Accountancy Chapter-2 Goodwill: Nature and Valuation Practical Question-9

In this video, we break down the step-by-step solution for Class 12 Accountancy, Chapter-2 Goodwill: Nature and Valuation Practical Question No. 9 from the TS Grewal textbook. Raman and Daman are partners sharing profits in the ratio of 60 : 40 and for the last four years they have been getting annual salaries of ₹ 50,000 and ₹ 40,000 respectively. The annual accounts have shown the following net profit before charging partner’s salaries: Year ended 31st March, 2022 – ₹ 1,40,000; 2023 – ₹ 1,01,000 and 2024 – ₹ 1,30,000. On 1st April 2024, Zeenu is admitted to the partnership for 1/4th share in profit (without any salary). The Goodwill is to be valued at four years’ purchase of weighted average profit of the last three years (after partner’s salaries); Profits are to be weighted as 1, 2, and 3, the greatest weight being given to the last year. Calculate the value of Goodwill. #12th #commerece #viral #class #goodwill