goodwill

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2010 why do we consider,'numbers of years of purchase' while valuing goodwill in partnership accounting?

sudhakar ca cwa

sudhakar ca cwa (Expert)
Follow

03 September 2010 'numbers of years of purchase' represents estimation that hw many years the profit will cum in the same manner.

becoz goodwill we will pay based on future profits only.

so we will multiply the profit with number of years of purchase

Message likes : 1 times