Valuation of Goodwill — Formula Sheet
Gujarat Board · Class 12 · Elements of Accounts
4 formulas from Valuation of Goodwill (Gujarat Board Class 12 Elements of Accounts) on one page, grouped by topic.
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Formulas and Key Relations
Methods of Valuation of Goodwill
Goodwill = Average Profit × Number of Years of Purchase
Average Profit = Total Profit of Past Years ÷ Number of Years
Goodwill = Weighted Average Profit × Number of Years of Purchase
Expected Profit = Capital Employed × (Expected Rate of Return ÷ 100)
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Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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