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Under ______ method the goodwill can be calculated by deducting the actual capital employed from the capitalized value of the average profits.

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Question

Under ______ method the goodwill can be calculated by deducting the actual capital employed from the capitalized value of the average profits.

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Solution

Under capitalisation of average profits method the goodwill can be calculated by deducting the actual capital employed from the capitalized value of the average profits.

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Chapter 2: Change in Profit Sharing Ratio among the Existing Partners - OBJECTIVE TYPE QUESTIONS [Page 2.98]

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D. K. Goel Accountancy Part A Volume 1 and 2 [English] Class 12
Chapter 2 Change in Profit Sharing Ratio among the Existing Partners
OBJECTIVE TYPE QUESTIONS | Q (C) 6. | Page 2.98
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