For calculations of goodwill by super profit method we calculate normal profit. But when to use average capital employed ( by closing capital less half of rectified profit after tax )and when closing capital employed if balance is given for one year only.
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Average capital employed for goodwill
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I have created a video explaining when to use Average caiptal employed and when to use Closing capital employed. Below is the link
https://youtu.be/jBTmietpoQU
Please let me know if you have any questions
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