Ts Grewal solutions Chapter 3 – Goodwill: Nature and valuation

Ts Grewal 2019 Solutions for Class 12 Chapter 3 Goodwill: Nature and purpose are provided here. All questions and Solutions from the Double Entry Book Keeping Ts Grewal 2019 Book of Class 12 Accountancy Chapter 3 Goodwill: Nature and purpose are provided here for you for free. You can just download the PDF file by just clicking on the download button given below.

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Question 1:

Goodwill is to be valued at three years' purchase of four years' average profit. Profits for last four years ending on 31st March of the firm were:
2016 − â‚¹ 12,000; 2017 − â‚¹ 18,000; 2018 − â‚¹ 16,000; 2019 − â‚¹ 14,000.
Calculate amount of Goodwill.

Answer:

Number of years’ purchase = 3