Solution for Q 31 to 37 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 Capitalization of average profits method and capitalization of super profits 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 31
| Average Actual Profits |
500000 |
| Calculation of Capital Employed |
| Total Assets |
5500000 |
|
| Less - Outsider Liability |
1400000 |
4100000 |
| |
|
|
| Normal rate of return |
10% |
| Normal Profits |
410000 |
| Goodwill as per Capitalization of Super Profits |
| Super Profits |
90000 |
| Normal rate of return |
10% |
| Goodwill |
900000 |
| Goodwill as per Capitalization of average profits |
| Actual Average profits |
500000 |
| Normal rate of return |
10% |
| Capitalized value of Business |
5000000 |
| Actual Capital Employed |
4100000 |
| Goodwill |
900000 |
Question 32
| Finding Capital Employed : |
| Total assets excluding stock |
100000 |
|
| Add - Stock |
20000 |
|
| Total assets |
120000 |
|
| Less - Current Liabilities |
10000 |
(Outside Liabilities) |
| Capital Employed |
110000 |
(120000-10000) |
| |
OR |
|
|
| |
|
|
|
| Liabilities |
Amount |
Assets |
Amount |
| Current Liabilities |
10000 |
Assets |
100000 |
| Partners Capital A/c |
110000 |
Stock |
20000 |
| (Balancing Figure) |
|
| |
|
|
|
| Total |
120000 |
Total |
120000 |
| |
|
|
|
| Capital Employed |
110000 |
|
|
| Normal rate of return |
8% |
|
|
| Normal Profits |
8800 |
(110000*8/100) |
| We assume the actual profits to be x |
| Actual Profits |
x |
|
| Super Profits |
(x - 8800) |
(Actual Profits - NormalProfits) |
| No of years purchase |
4 |
|
| Goodwill |
(x - 8800) X 4 |
(Super profits X No of years purchase) |
| Value of Goodwill(Given) |
60000 |
|
| Now we use the formula |
| Goodwill = (Actual Profits - Normal profits ) X number of years purchase |
| (x - 8800) X 4 = 60000 |
| Now solve algebrically |
| (x - 8800) = 60000 / 4 |
| (x- 8800) = 15000 |
| x = 15000 + 8800 |
| x =23800 |
| Actual Profits = Rs 23800 |
Question 33
| Super Profits |
50000 |
| |
|
| Normal rate of return |
10% |
| |
|
| Value of Goodwill |
500000 |
Question 34
| Actual average profits |
30000 |
| |
|
| Capital Employed |
200000 |
| Normal rate of return |
10% |
| Normal profits |
20000 |
| Super profits |
10000 |
| Normal rate of return |
10% |
| Goodwill |
100000 |
Question 35
| Actual average profits |
150000 |
|
| |
|
|
| Capital Employed |
500000 |
(300000+200000) |
| Normal rate of return |
20% |
|
| Normal profits |
100000 |
|
| Super profits |
50000 |
|
| Normal rate of return |
20% |
|
| |
|
|
| Goodwill |
250000 |
|
Question 36 (i)
| Year |
|
Profits |
Remuneration |
|
Adjusted Profits |
|
| 31-Mar-24 |
|
160000 |
100000 |
|
60000 |
|
| 31-Mar-25 |
|
180000 |
100000 |
|
80000 |
|
| 31-Mar-26 |
|
200000 |
100000 |
|
100000 |
|
| Total Profits |
|
540000 |
|
|
240000 |
|
| Average profits |
80000 |
(240000/3) |
| No of years purchase |
3 |
|
| Goodwill |
240000 |
(80000*3) |
Question 36 (ii)
| Assets of the firm |
700000 |
|
|
| Less - |
|
|
|
| Outside Liabilities |
100000 |
600000 |
|
| |
|
|
|
| Normal rate of return |
10% |
|
| Normal profits |
60000 |
(600000*10/100) |
| Super Profits |
20000 |
|
| No of years Purchase |
3 |
|
| |
|
|
|
| Goodwill |
|
60000 |
|
Question 36 (iii)
| Super Profits |
20000 |
|
| Normal rate of return |
10% |
|
| |
|
|
| Goodwill |
200000 |
(20000*100/10) |
| (Super profit X 100/Normal rate of return) |
Question 36 (iv)
| Actual adjusted average profits |
80000 |
|
| |
|
|
| Normal rate of return |
10% |
|
| Capitalized Value |
800000 |
|
| Actual Capital Employed |
600000 |
|
| |
|
|
| Goodwill |
200000 |
(800000-600000) |
| (Capitalized value of Business - Capital employed) |
Question 37 (i)
| Profits for last 3 years |
| 2022-2023 |
90000 |
|
| 2023-2024 |
80000 |
|
| 2024-2025 |
100000 |
|
| |
|
|
| Total Profits |
270000 |
|
| Average Profits |
90000 |
|
| |
|
|
| Normal Rate of Return |
12% |
|
| Capital value of business |
750000 |
(90000/12*100) |
| Less - |
|
|
| Actual Avg Capital Employed |
600000 |
|
| |
|
|
| Goodwill |
150000 |
|
Question 37 (ii)
| Step 1 - Calculation of Normal Profits |
| Average capital employed |
600000 |
| Normal rate of return |
12% |
| |
|
| Normal Profits |
72000 |
| Step 2 - Calculation of Super Profits |
| Actual Average Profits |
90000 |
(Calculated in part (i) above) |
| Less - Normal Profits |
72000 |
|
| |
|
|
| Super Profits |
18000 |
|
| Step 3 - Calculation of Goodwill |
| Goodwill = Super profits X 100/Normal Rate of Return |
| 18000 X 100 / 12 |
| 150000 |
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
