TS Grewal Solutions 2026-27 [Class 12] – Partnership Accounts Goodwill – Q 11 to 20

Solution for Q 11 to 20 of Chapter 2 of T S Grewal Class 12 Accountancy 2026-27 are given below. These partnership accounts Goodwill class 12 T S Grewal Solutions are based on topics Supr profits method, Calculation of average profits, normal rate of return and capital employed

Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps. These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.

Question 11

Capital Employed	50000

Normal rate of Return	15%
Normal Profits	7500	(50000*15/100)
Actual Average Profits	16000
Super Profits	8500	(16000-7500)
No of Years Purchase	4

Goodwill	34000	(8500*4)	Super profits X No of years purchase

Question 12

Capital Employed	1400000

Normal rate of return	10%
Normal profit (A)	140000
Actual average profits (given) (B)	180000
Super Profits (B) - (A)	40000
Number of years purchase	5

Value of goodwill	200000

Question 13

A's Capital	120000
B's Capital	80000
Total Capital	200000	firms capital

Annual rate of interest	20%
(Normal rate of return)

Normal Profits	40000	(200000*20/100)
Last 3 years average profits
Year 1	34000
Year 2	38000
Year 3	30000
Total Profits	102000

Average profits	34000	(102000/3)

No Goodwill as normal profits > Actual average profits

Question 14

Average Capital Employed	200000

Normal rate of return	10%
Normal Profits	20000	(200000*10/100)
Average Expected net profits	36000
Less - Remuneration to partners	6000

Actual adjusted average profits	30000
Super Profits	10000	(30000-20000)
No of Years Purchase	2
Value of Goodwill	20000	(10000*2)

Question 15

Capital Employed	80000
Normal rate of return	15%
Normal Profits	12000
Calculation of
average actual profits
2024	17000
2025	20000
2026	23000
Total	60000

Average profits	20000
Super Profits	8000
No of years Purchase	2
Value of Goodwill	16000

Question 16

Step 1 - Calculation of Capital Employed

Assets side approach
Fixed Assets (tangible)	75000
Furniture	15000
Stock	30000
Debtors	20000
Cash	50000
Total Assets	190000

Less - Outside Liabilities
Creditors	5000
Bills Payable	25000
Total Liabilities	30000

Capital Employed	160000

Note :

Capital employed can also be calculated from liabilities side approach

Capital empliyed will be same from both the approaches

Step 2
Calculation of Normal profits
Capital employed	160000
Normal rate of return	12%
Normal profit	19200

Step 3
Calculation of Super Profits
Actual Average profits	30000
Less - Normal profits	19200
Super Profits	10800

Step 4
Calculation fo Goodwill
Super profits	10800
Number of years purchase	4
Value of Goodwill	43200

Step 5
Share of Saurabh in Goodwill
Saurabh has become an equal partner among three partners
Value of firm goodwill	43200
Saurabh share in profits	1/3
Saurabh share in Goodwill	14400

Question 17

Balance Sheet

Liabilities	Amount	Assets	Amount
Partner Capital A/c	60000	Non Cash Assets	70000
Reserves	10000	Cash	5000
Creditors	5000

Total	75000	Total	75000

Calculation of Capital Employed
Total Assets	75000
Less - Creditors	5000	(Outside Liabilities)
Capital Employed	70000

Normal rate of return	20%
Normal Profits	14000	(70000*20/100)

Average Profits	x
Super Profits	(x - 14000)
No of years purchase	4
Goodwill	(x - 14000) X 4
Goodwill	24000

Solve Algebracally for x
(x - 14000) X 4 = 24000
x = (24000 / 4) + 14000
X = 20000
Average Profits = 20000

Question 18

Step 1
Calculation of Capital Employed
Total Assets	200000
Less - Outside Liabilities	0
(As per question there is no outside liability)
Capital Employed	200000

Step 2
Calculation of Normal profits
Capital Employed	200000
Normal rate of return	10%
Normal profits	20000

Step 3
Calculation of Actual Average profits
This is a missing value question. Value of Goodwill I already given in question
We will assume actual average profits as x

Goodwill = (Actual Average profits - Normal profits) X Number of Yrs purchase
60000 = ( x - 20000) X 4
60000 = 4x - 80000
x = 140000/4

Value of actual average profits	Rs 35000

Question 19

Let the capital employed be x

Normal rate of return	10%
Normal profits	0.1x
Average actual profits	200000
Super profits	200000 - 0.1x
No of years purchase	4
Value of Goodwill	(200000 - 0.1x) X 4

Value of goodwill	250000

Solve algebrically for x

(200000 - 0.1x) X 4 = 250000

(200000 - 0.1x) = 250000 / 4

(200000 - 0.1x) = 62500

0.1x = (200000 - 62500)

0.1x = 137500

x = (137500 / 0.1)

1375000

Capital Employed = Rs 1375000

Question 20

Average Profits	180000
Avg capital employed	1250000
normal rate of return	x

Goodwill	160000
no of years purchase	2

Note:

This is a missing value question. We will assume normal rate of return as x

Note:

Formula for goodwill as per super profits method is :

Goodwill = (Actual profits - (Capital Employed * Normal rate of return)) X No of years purchase

(180000-(1250000*x/100) X 2 = 160000

180000-12500x = 160000/2

12500x = 180000-80000

x = 100000/12500

Q 1-10 | Q 11-20 | Q 21-30 | Q 31-37

T S Grewal Solutions – Partnership Accounts Goodwill – All Questions

T S Grewal Solutions Class 12 2026-27 – All Chapters

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