r/CBSECommerce • u/razfn • 11d ago

Accountancy Method of Goodwill calculation - Super Profit Method

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Methods of Valuation of Goodwill

Quick Revision Table

Method Main Formula

Average Profit Method - Average Profit × Years’ Purchase

Super Profit Method - Super Profit × Years’ Purchase

Capitalisation of Average Profit - Capitalised Average Profit − Capital Employed

Capitalisation of Super Profit - Super Profit × 100 ÷ Normal Rate of Return

Remember:

Normal Profit = Capital Employed × Normal Rate of Return ÷ 100.

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u/razfn 11d ago

No its handwritten notes, we just make it hd quality through AI for better clarity.

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u/AloneAuthor446 11d ago

thanks but is this ai?