Which of the following is not a method to calculate goodwill by using capitalization method ?

Capitalisation of Average Profits Method

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Capitalisation of Future Profits Method

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Capitalisation of Super Profits Method

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None of these

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Solution

The correct option is B
Capitalisation of Future Profits Method

There are two ways of calculating Goodwill under this method:

(i) Capitalisation of Average Profits Method

(ii) Capitalisation of Super Profits Method

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Similar questions

Which of the following is not a method for valuation of goodwill?

8, 00, 000

15 %

12, 00, 000

R s .8, 00, 000

15 %

R s .12, 00, 000

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