Class 12th Accountancy Chapter-2 Goodwill: Nature and Valuation Practical Question-24

In this video, we break down the step-by-step solution for Class 12 Accountancy, Chapter-2 Goodwill: Nature and Valuation Practical Question No. 24 from the TS Grewal textbook. Akshay and Amit are partners in a firm and they admit Jaspal into partnership w.e.f. 1st April 2024. They agreed to value goodwill at 3 years’ purchase of super profit method for which they decided to average profit of last 5 years. The profits for the last 5 years were: Year Ended Net Profit (₹) 31st March 2020 1,50,000 31st March 2021 1,80,000 31st March 2022 1,00,000 (including abnormal loss of ₹ 1,00,000) 31st March, 2023 2,60,000 (including abnormal gain (profit) of ₹ 40,000) 31st March 2024 2,40,000 The firm has total assets of ₹ 20,00,000 and Outside Liabilities of ₹ 5,00,000 as on that date Normal Rate of Return in similar businesses is 10%. Calculate the Value of Goodwill. #12th #class #commerece #goodwill #viral