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Weighted Average Method of Calculating Goodwill - Computing Normal Profits | Class XII Accounts
1 Views • Jul 10, 2015
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In order to calculate Goodwill under this Method, we compute the Weighted Profits for each year, by multiplying profits of that year with the weights given. Total of such weighted profits is divided by total of weights . Such result is multiplied by Number of years purchase, if any.
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