Solution for Q 21 to 30 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 Super profits method, Capitalization method.
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 21
| Average profits |
120000 |
| Normal rate of return |
15% |
| Goodwill |
135000 |
| no of years purchase |
3 |
| |
|
| Capital Employed |
?? |
| Note: |
| This is a missing value question. We will assume normal rate of return as x |
| |
| Formula for goodwill as per super profits method is : |
| Goodwill = (Actual profits - (Capital Employed * Normal rate of return)) X No of years purchase |
| Calculation: |
| (120000-(x*15/100))*3 = 135000 |
| 120000-0.15x = 135000/3 |
| 0.15x = 120000-(135000/3) |
| 0.15x = 120000-45000 |
| x = 75000/0.15 |
| 500000 |
Question 22
| Capital Employed |
630000 |
|
| Normal rate of return |
5% |
|
| Normal profits |
31500 |
(630000*5/100) |
| Actual average profits |
100000 |
|
| Add - undervaluation of stock |
40000 |
(if questions is silent then we assume stock as closing stock) |
| |
|
|
| Actual adjusted average profits |
140000 |
|
| |
|
|
| Super profits |
108500 |
(140000-31500) |
| No of years purchase |
5 |
|
| Goodwill |
542500 |
(108500*5) |
Question 23
| Capital Employed |
4200000 |
|
| Normal rate of return |
15% |
|
| Normal profits |
630000 |
(4200000X15/100) |
| |
|
|
| Actual average profits |
750000 |
|
| Less - overvaluation of stock |
30000 |
|
| |
|
|
| Actual adjusted average profits |
720000 |
|
| |
|
|
| Super profits |
90000 |
(720000-630000) |
| No of years purchase |
3 |
|
| Goodwill |
270000 |
(90000*3) |
Question 24
| Year Ended |
|
31-Mar-22 |
31-Mar-23 |
31-Mar-24 |
31-Mar-25 |
31-Mar-26 |
|
| Net Profits |
|
150000 |
180000 |
100000 |
260000 |
240000 |
|
| Add - Abnormal Loss |
|
|
|
100000 |
|
|
|
| Less - Abnormal Gain |
|
|
|
|
40000 |
|
|
| Adjusted Profits |
|
150000 |
180000 |
200000 |
220000 |
240000 |
|
| |
|
|
|
|
|
|
|
| Total Profits |
|
|
|
|
|
990000 |
|
| Average Profits |
|
|
|
|
(990000/5) |
198000 |
|
| Calculation of Capital Employed |
| Total Assets |
2000000 |
|
| Less - Outside Liabilities |
500000 |
|
| |
|
|
| Capital Employed |
1500000 |
(20L - 5L) |
| Normal rate of return |
10% |
|
| Normal Profits |
150000 |
(15L X 10/100) |
| Super Profits |
48000 |
|
| No of years Purchase |
3 |
|
| Goodwill |
144000 |
(48000*3) |
Question 25
| Profit for the year |
200000 |
|
| |
|
|
| Normal rate of return |
10% |
|
| Capitalized value of business |
2000000 |
(200000*100/10) |
| Total Actual Capital of the firm |
1600000 |
|
| |
|
|
| Goodwill |
400000 |
(2000000-1600000) |
Question 26
| Average profits |
300000 |
|
| Normal rate of return |
15% |
|
| Capitalized value of business |
2000000 |
(300000*100/15) |
| (Actual Profits *100/Normal rate of return) |
| Calculation of actual capital employed |
| Assets |
1700000 |
|
| Less - Liabilities |
200000 |
1500000 |
| |
|
|
| Goodwill |
|
500000 |
Question 27
| Capitalized value of average profits |
750000 |
| |
|
|
| Actual Capital Employed |
| A |
300000 |
|
| B |
200000 |
500000 |
| Goodwill |
|
250000 |
Question 28
| Average Profits |
100000 |
|
| Normal rate of return |
10% |
|
| Capitalized value |
1000000 |
(100000*100/10) |
| (Average Profits X 100 / Normal Rate of Return) |
| Calculation of actual capital employed |
| |
|
|
|
| Puneet Capital A/c |
250000 |
|
|
| Tarun Capital A/c |
250000 |
|
|
| Puneet Current A/c |
30000 |
|
|
| Tarun Current A/c |
20000 |
550000 |
|
| Goodwill |
|
450000 |
(1000000-550000) |
Question 29
| 2022 |
59000 |
|
| 2023 |
67000 |
|
| 2024 |
39000 |
|
| 2025 |
42000 |
|
| 2026 |
54000 |
|
| Total |
261000 |
|
| Average profits |
52200 |
(261000/5) |
| Note : |
|
|
| Capitalization rate |
20% |
|
| (Normal Rate of Return) |
| |
|
|
| Capitalized value of Business |
261000 |
(52200 * 100 / 20) |
| (Average Profits X 100 / Normal Rate of Return) |
| |
|
|
| Actual Net Assets of the business |
200000 |
|
| (Actual Capital Employed) |
| Goodwill |
61000 |
(261000-200000) |
Question 30
| Calculation of Capital Employed |
| Assets |
4000000 |
|
| Less - External Liabilities |
720000 |
3280000 |
| |
|
|
| Normal rate of return |
10% |
|
| Normal Profits |
328000 |
(3280000*10/100) |
| Super Profits |
72000 |
(400000-328000) |
| |
|
|
| i) Normal rate of return |
10% |
|
| Goodwill by |
720000 |
(72000*100/10) |
| (capitalization of super profits) |
| |
|
|
| ii) No of years purchase |
3 |
|
| Goodwill |
216000 |
(72000*3) |
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
