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Valuation of goodwill | capitalisation of super profit method
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Valuation of goodwill | capitalisation of super profit method

Welcome to Commerce Shruti! In this video, we’ll explore the Capitalization of Super Profit Method for valuing goodwill, a method that focuses on the extra profits earned by a business compared to normal profits in the industry.

Goodwill represents the business's reputation and earning potential. The Capitalization of Super Profit Method involves:

Understanding super profit as the excess profit earned over normal profit.
Calculating goodwill by capitalizing the super profits at an agreed rate of return.
The formula for goodwill and its practical application in accounting.
This method is widely used in situations like partnership adjustments, business mergers, and acquisitions. By the end of this video, you’ll have a strong grasp of this concept, ideal for Class 12 commerce students, CA aspirants, and beginners in accounting.

#ValuationOfGoodwill
#CapitalizationOfSuperProfit
#AccountingConcepts
#CommerceShruti
#Class12Accounting
#GoodwillCalculation
#LearnAccounting
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Genre: Education
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Uploaded At Dec 28, 2024 ^^


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RYD date created : 2024-12-31T09:26:35.5086Z
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