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Weighted Average Method of Calculating Goodwill - Problem 1 | Class XII Accounts
18 Views • Jul 10, 2015
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The time has gone where you need to spend money on tuition. Learn here on the best Educational channel for CBSE and ICSE boards.
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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