WHY IS DIVIDEND ADDED IN CLOSING CAPITAL EMPLOYED WHILE CALCULATION OF AVERAGE CAPITAL EMPLOYED IN VALUATION OF GOODWILL ?
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Valuation of goodwill
Replies (3)
Dear Ashay,
Refer followinf link :
Read Point no.: 2. of refd link.
https://www.scribd.com/doc/28841904/Valuation-of-Goodwill
Dividend is an appropriation of profit which in turn is a part of capital.
Profit / Loss is nothing but 'changes in capital' after adjusting drawings and additions.
Is divided or proposed dividend is fully added bak to closing capital or like drawings n profits half(1/2) of it is added bak?
Plz reply to my query..
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