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Under capitalization method, goodwill can be calculated from which difference?

Answer and explanation

Correct answer: Difference between capitalised value and actual capital

Under capitalization method, capitalised value is based on earnings. Difference from actual capital may be goodwill.

Related tags

Capitalization MethodCapitalised ValueGoodwillGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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