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Capitalisation method

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Sujitha M
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Capitalisation method por Mind Map: Capitalisation method

1. Capitalisation of average profit

2. Goodwill=Total capitalisation of firm-net asset. Total capitalisation value of firm= Average profit×100/NRR Net asset=Total asset -liabilities

3. Capitalisation of super profit

4. Goodwill=super profit×100/NRR Super profit is calculated as per super profit method (a mentioned above).