Maharashtra State BoardHSC Commerce 12th Board Exam
Advertisement Remove all ads

Money Value of the Business Reputation ? - Book Keeping and Accountancy

Money value of the business reputation ?
Advertisement Remove all ads

Solution

  • Goodwill

    Explanation:

    Goodwill is an intangible asset of the firm. It is the value of firm’s reputation and good brand name in the market. A firm earns goodwill by its hard work and thereby winning the blind trust and faith of its customers by fulfilling their demand in both qualitative and quantitative aspects. A positive goodwill helps the firm to earn supernormal profits compared to its competitors that earns normal profits (which is equal to zero).

Concept: Admission of a Partner - Treatment of Goodwill
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×