Accountancy, asked by alfredbenz14, 7 months ago

How the goodwill is valued under the Capitalisation of Average profit method?

Answers

Answered by gauravsharmatech

Explanation:

Capitalization Method

(i) Capitalization of Average Profits: Under this method, the value of goodwill is calculated by deducting the actual capital employed from the capitalized value of the average profits on the basis of the normal rate of return.

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