Under the capitalisation method, the formula for calculating the goodwill is Sol: | Faculties

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Mr. Dubey

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📊 Financial Accounting

Q. Under the capitalisation method, the formula for calculating the goodwill is Sol:

(A) Super profits multiplied by the rate of return
(B) Average profits multiplied by the rate of return
(C) Super profits divided by the rate of return
(D) Average profits divided by the rate of return

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✅ Correct Answer: (C) Super profits divided by the rate of return

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