Valuation of Goodwill and calculation!! question asked in many companies,try to remember the methods..
Answer / bjanmejai
Valuation of Goodwill
1. Super profit Method
2. Capitalization method
Factors for valuing GW
1. FMP
2. CE
3. NRR
Points to be considered while Calculation of FMP
1. Only Profit of those years with normal activity to be considered (years of Abnormal activity excl.)
2. Profits – Operating profits (non-operating items excl but if they are recurring to be incl)
3. Income from Trade Investment only to be considered (NTI not to be considered)
4. Fluctuating Profits – Simple Avg
5. Profits with a trend - Weighted Avg
6. If fixed asset is revalued – ignore p/l on revaluation , if other assets(liab)- consider
7. But consider addl. depn on the revaluation o FA
| Is This Answer Correct ? | 8 Yes | 0 No |
what do mean by reserve and provision both are same or not?
ESI payable in the year 2010 was Rs.11000 but not accounted for by mistake in that year.It was paid in the year 2013-14. Then what will be the journal entry?
How to calculate ESI pls give with example? and Professional tax give with example brother?
6. What is the amount of Simple Interest on $ 1,500 for 90 days at 6% interest (year is 360 days)?
What Is Depreciation, and from which date do we charge Depreciation for an asset ?
Hi Everyone, We purchased the Goods from other state, and I am liable for Entry Tax, my entry Tax is deposited in bank before 15th of every month. Now my questtion is : I purchase the Packing Items from other state but I return the same to suplier should it require entry tax deposit or not for this items. please explain
if co. (proprietorship). purchase mobile phone for employees than mobile phones under off. equipment .we have rec. purchase bill gst applicable how shows entry
The following figures have been extracted from Katerina’s books of account for the month of April 2010: $ Sales 460 000 Total variable costs 299 000 Total fixed costs 90 000 Profit 71 000 (d) Calculate the sales in dollars necessary to make a profit of $100 000.
Loan & Advances which heading calculated ?
How to Finalized Accounts? Please Guide.
As you know any other accounting application?
What is the difference between accounts & Finance?
1 Answers Muthoot Group, Weber,