Accountancy, asked by aswinthangaraj99, 3 months ago

Annuity method Goodwill is computed as​

Answers

Answered by hareem23
3

 \huge \mathbb \red{ANSWER: }

In the annuity method, goodwill can be calculated by taking average super profit. This particular profit is the value of an annuity over a certain number of years. Computation of the present value of this annuity is done by discounting it at the given rate of interest, i.e. on the normal rate of return.

Similar questions