Valuation of Goodwill
This query is : Resolved
ACMA Obulirajan R
(Querist)
25 April 2009
Can goodwill be more than capital while selling? Please explain.
CA. B.SRINIVASULU
(Expert)
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.
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.
Manmohan ACA, CS
(Expert)
26 April 2009
Goodwill can be more than capital
26 April 2009
yes it can be more than capital
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