Akhilesh Teri (Student) (102 Points)
29 April 2016I have a doubt. While valuing goodwill, I see sometimes we use average capital employed & sometimes closing capital employed. Please explain as to how should we decide if we have to use Average capital employed or closing capital employed other than a case where it is specifically given in the question or a case where opening and closing capitals both are given.
mohammad rasool baig
(Management Consultant)
(1026 Points)
Replied 29 April 2016
We need to consider average capital only if in question opening capital details is not available then we will take the assumption that closing & opening capital are same.
Gnananandam
(Student)
(74 Points)
Replied 05 January 2017
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