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mediumMCQCUET Accountancy 2025 22 May Shift 22026Accountancy
1 mark

Goodwill can also be ascertained by capitalising the super profit directly under which method?

  1. A
    Super Profit Method
  2. B
    Average Profit Method
  3. C
    Weighted Average Profit method
  4. D
    Capitalisation of Super Profit Method

Solution & Step-by-step Explanation

Under the Capitalisation of Super Profit Method, Goodwill is explicitly calculated by dividing the Super Profits directly by the Normal Rate of Return:

Practice this question

Try it yourself before checking the explanation above.

Goodwill can also be ascertained by capitalising the super profit directly under which method?
A
Super Profit Method
B
Average Profit Method
C
Weighted Average Profit method
D
Capitalisation of Super Profit Method

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