Please do inform me why is half revenue profit considered for the calculation of average capital employed while the computation of goodwill??
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Computation of goodwill
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Yeah! I actually want to know why is half of the profit considered? Is there any reason behind this concept??
No there is no specific reason behind this logic it is simply when we have to caluclate Average figure then we should at leat two figure or more. Hence there is same logic when there is no opening value is given then we can provide the 1/2 of the curent so it can get average automatically.
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