how the goodwill is valued under the capitalisation of super profit method
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Answer:
capitalisation of super profit :
goodwill = super profit ×100/nrr
Explanation:
goodwill = super profit × 100/nrr
super profit = actual profit - normal profit
normal profit =capital employed × nrr/100
capital employed = assets - liability
( actual profits is nothing but actual average profit)
hope this is useful
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