Tag Archives | Valuation of Shares

Valuation of Goodwill and Shares | Accounting

Here is a compilation of top eleven accounting problems on valuation of goodwill and shares with its relevant solutions. Problem 1:  From the following information find out Goodwill (a) as per annuity method, (b) as per 4 years' purchase of super profit, and (c) as per capitalisation of super profit method. Net profits for four years: I year Rs. 30,000; [...]

By |2017-02-06T20:58:58+00:00February 6, 2017|Goodwill|Comments Off on Valuation of Goodwill and Shares | Accounting

Valuation of Shares: 3 Methods | Accounting

The following are the methods for valuation of shares:- 1. Net Asset Method (Intrinsic value) 2. Yield Method 3. Earning Capacity.  Method # 1. Net Asset Method: This is also known as Balance Sheet Method or Intrinsic Method or Break-up Value Method or Valuation of Equity basis or Asset Backing Method. Here the emphasis is on the safety of investment [...]

By |2017-02-06T20:58:58+00:00February 6, 2017|Shares|Comments Off on Valuation of Shares: 3 Methods | Accounting
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