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Calculate goodwill… (Class 12 Accountancy SQP 2026-27, Q20)

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AccountancyCBSE Class 12 · Sample paper, session 2026-27 · 3 marks · Short answer

CBSE Class 12 Accountancy sample paper 2026-27: question 20

From the official CBSE sample question paper for 2026-27, section A, question 20, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q20 · 3 marks · Short answerReconstitution of a Partnership Firm – Admission of a Partner

Calculate goodwill of the firm on the basis of 3 years' purchase of the average profits of the last five years which were as follows:

YearAmount (₹)
31st March 2022(1,00,000)
31st March 202330,00,000
31st March 202416,00,000
31st March 202517,50,000
31st March 202618,50,000

Additional Information:
(i) On 1st January 2025, a fire broke out which resulted into a loss of goods of ₹3,00,000. A claim of ₹ 70,000 was received from the insurance company.
(ii) During the year ended 31st March 2026, the firm realised ₹ 80,000 from sale of scrapped machinery.
(iii) For the year ending 31st March 2026, wages of ₹ 50,000 were debited twice inadvertently by the accountant of the firm.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

Open one hint at a time and try again before the next.

Hint 1

A fire on 1st January, 2025 falls in the year ending 31st March, 2025.

Hint 2

Abnormal losses are added back and abnormal gains taken out.

Hint 3

A loss year still counts in the five-year average.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Adjust abnormal items. 2025: add back the abnormal fire loss net of the claim (₹ 3,00,000 − ₹ 70,000 = ₹ 2,30,000): ₹ 19,80,000. 2026: remove the abnormal gain from scrap ₹ 80,000 and add back the wages debited twice ₹ 50,000: ₹ 18,20,000.

    1 mark

  2. Total = (1,00,000) + 30,00,000 + 16,00,000 + 19,80,000 + 18,20,000 = ₹ 83,00,000; average = ₹ 16,60,000.

    1 mark

  3. Goodwill = ₹ 16,60,000 × 3 = ₹ 49,80,000.

    1 mark

Answer: Average profit ₹ 16,60,000; goodwill ₹ 49,80,000

Where the marks are

  • Adjusted profits (1 mark)
  • Average profit (1 mark)
  • Goodwill (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Reconstitution of a Partnership Firm – Admission of a Partner, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.