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Valuation of Goodwill

This query is : Resolved 

25 April 2009 Can goodwill be more than capital while selling? Please explain.

25 April 2009 Goodwill can be more than capital.

Capital is the amount which the proprietor or partner or shareholders put the money for doing the business.

Goodwill is based on future prospectus of the business and also based on past record and the profitability. Therefore the persons will purchase at higher price if in future the profits are more.

26 April 2009 Goodwill can be more than capital

26 April 2009 yes it can be more than capital


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