Question

mention various method for computing the value of good will​

Answer 1

Answer:

There are several methods which can be implemented for valuation of goodwill which is as follows:

.Average Profit Method. Goodwill's value in this method is considered by multiplying the Average Future profit by a certain number of year's purchase. ...

.Super Profit Method: ...

.Capitalization Method: ...

.Annuity Method:

Answer 2

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.

Explanation:

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