Which of the following is NOT a method o

CUET Preparation Today

Start Free Mocks

Home Questions S4GWECWR9F

Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

Which of the following is NOT a method of valuation of goodwill?

Options:

Average profit method

Super profits method

Capitalisation method

Average super profit capitalization method

Correct Answer:

Average super profit capitalization method

Explanation:

The correct answer is Option (4) → Average super profit capitalization method

The important methods of valuation of goodwill are as follows

1. Average Profits Method

2. Super Profits Method

3. Capitalisation Method