Question

what is the nature of goodwill for business which are depends on the individual skills?​

Answer 1

Explanation:

There are some businesses whose goodwill depends on the owner. Such goodwill is called Dog Goodwill and its value is less. Certain customers are attached to the owner of the business due to his exceptional skill, personality, honesty etc.

Answer 2

Goodwill is an intengible assets. Intengible assets are those which can neither be seen nor be touched but can be realised.

Goodwill is calculated by the following method:-

1. Average profit method

2. Supwr profit method.

3. capitalisation method.