Question

Which of the following is the method for valuation for Goodwill?

• A. Average profit method.
• B. Super profit method.
• C. Capitalisation method.
• D. All of the above.

Answer 1

Answer: (D)

All of the above.

Various methods have been advocated for the valuation of goodwill of a
partnership firm.The important methods of valuation of goodwill are as follows:
1. Average Profits Method
2. Super Profits Method
3. Capitalisation Method