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Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Change in Profit-Sharing Ratio and Admission of a Partner › Which is a recognised method of valuing goodwill?

Which is a recognised method of valuing goodwill?

ASuper profits method
BSinking fund method
CStraight line method
DWritten down value method
Answer & Solution
Correct answer: A. Super profits method
Average profits, super profits and capitalisation are the standard goodwill methods; the others are depreciation methods.
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