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valuation of goodwill


Isha Nisha Johar   07 April 2018

Isha Nisha Johar

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for calculating capital employed from asset side we take which value of asset ...there is no revalued figure of asset...in balance sheet we will deduct depriciation from aseet or we will include gross value of aseet??...plz explain in detail

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Divakar (Student CA Final )     07 April 2018

Divakar
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Fixed assets appeared in balance sheet after depreciation... Take that value as it is... If given revalued figures then we take that

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Isha Nisha Johar   07 April 2018

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why depreciation is deducted when it is alerady deducted from profits?

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NAVEEN CHAND (GST Practitioner )     07 April 2018

NAVEEN CHAND
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Originally posted by : Isha Nisha Johar
why depreciation is deducted when it is alerady deducted from profits?

DOUBLE ENTRY SYSTEM >> DOUBLE EFFECTS 

ONE DEDUCT FROM PROFIT 

SECOND, DEDUCT FROM FIXED ASSETS 

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Divakar (Student CA Final )     07 April 2018

Divakar
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Hey first entry is.. Depreciation A/C Dr To fixed assets A/c... Then depreciation charged to profit and loss account.... P/L A/C dr to Depreciation A/c..... This is basic.... Why u confused in that.... See accounting is double entry systems ... Every transaction has two effects .. Otherwise how accounts get tallied... Hope u understood that

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Isha Nisha Johar   07 April 2018

Isha Nisha Johar

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then why depreciation on revalued figure is not deducted from asset for valuation of goodwill

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Divakar (Student CA Final )     07 April 2018

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Hey in valuation of goodwill revalued figures r considering after all adjustments... It is assuming that revalued figure is after depreciation and that is the market value.... Valuation of goodwill is not account.... That is just valuation of shares and goodwill...

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Divakar (Student CA Final )     07 April 2018

Divakar
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Ur query is resolved na?? That revalued figure is market price of that assets.... That revaluation done just for valuation purposes.... And that increased value not reflected in accounts

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satish (teaching)     08 April 2018

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revalued figures are considered as on the date valuation of goodwill. 

so no question of depreciation on revalued numbers.

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MoHiT chaudhary   07 April 2018

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After depreciation


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