Timestamp :: 9/6/2015 11:00:30
Name :: Poonam
Your Country :: India
Question Title: :: Goodwill
Explain your question in detail :: Goodwill is asset for company but how we
can evaluate it in Monetary term because it is intangible assets and what
will be the journal entry?
Answer : Yes, we can easily calculate goodwill value in money. For example I am operating this website from 2008. I worked hard. There are lots of people come here for reading accounting contents. If I sell it to 3rd party,
I will take website payment + reputation value which can be easily be calculated on the basis of page views. Any web hosting company can calculate it and fix the price of goodwill of my website. Like any offline shop, there is the value of goodwill on the basis per month sale. If a business shop will sell 500000 Rs. Per month sale and normal sale of same market is 300000 rs. , it means he has right minimum 50% of total exces sale estimation in the form of goodwill. Search svtuition.org, you can find its journal entries.
