Introduction Goodwill and Method of Calculating Goodwill (Accountancy)

Topic Covered:

1. Introduction of goodwill

a. Features of Goodwill

b. Factors Affecting the Value of Goodwill

c. Need for Valuing Goodwill

2. Type of goodwill

a. Purchased Goodwill

b. Self Generated Goodwill

3. Method of calculating goodwill

a. Average profit method.

b. Super profit method.

c. Capitalize method of goodwill.