Valuation of goodwill
This query is : Resolved
24 September 2012
Dear Sir,
In case of proprietorship concern, engaged in business of sweets & Namkeen since 20 to 30 years.
What should be method of valuating goodwill of the business.
Thanks !
In case of proprietorship concern, engaged in business of sweets & Namkeen since 20 to 30 years.
What should be method of valuating goodwill of the business.
Thanks !
CA Ayush Agarwal
(Expert)
24 September 2012
Goodwill Valued as Per Valuation Actuation.
Since This is Prop. Concern,
Not Obliged by Any Law, Even You Can Value Goodwill, There are Various Method are Prescribed..
In That Best Method What i Suggest is Go For
Average Profit & Super Profit Method.
Since This is Prop. Concern,
Not Obliged by Any Law, Even You Can Value Goodwill, There are Various Method are Prescribed..
In That Best Method What i Suggest is Go For
Average Profit & Super Profit Method.
24 September 2012
Suppose I place Rs. 3 lacs as goodwill in assets side of balance sheet ending on 31 March 2012. Then it will increase assets side upto Rs. 3 lacs than liabilities side.
How to increase liability side for Rs. 3 lacs.
How to increase liability side for Rs. 3 lacs.
CA Ayush Agarwal
(Expert)
24 September 2012
its to adjusted with capital account
CA Ayush Agarwal
(Expert)
25 September 2012
Otherwise You Can Make a Entry:-
Goodwill dr.
to Capital Account Also
Being Goodwill Recognised.
Goodwill dr.
to Capital Account Also
Being Goodwill Recognised.
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