WHY IS DIVIDEND ADDED IN CLOSING CAPITAL EMPLOYED WHILE CALCULATION OF AVERAGE CAPITAL EMPLOYED IN VALUATION OF GOODWILL ?
CMA Shilpa Shinde
(COST ACCOUNTANT)
(217 Points)
Replied 22 March 2013
Dear Ashay,
Refer followinf link :
Read Point no.: 2. of refd link.
https://www.scribd.com/doc/28841904/Valuation-of-Goodwill
Jishnu Surendran
(Finance Manager)
(312 Points)
Replied 23 March 2013
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.
Sugandhi Joshi
(B.Com)
(28 Points)
Replied 24 January 2015
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