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Class 12 Accountancy Partnership Accounts - Basic Concepts GoodwillMedium

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Which profit should be taken as the base first in goodwill valuation?

Answer and explanation

Correct answer: Normal and future maintainable profit

Goodwill is based on sustainable future earnings. Therefore abnormal items should be removed and normal profit should be used.

Related tags

Goodwill Future Maintainable Profit Concept Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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