Goodwill Part 4 || Capitalisation of Average Profit Method || 12th Accountancy by CA Parminder Singh

In this video, we explore the Capitalisation of Average Profit Method for calculating Goodwill—a key topic in 12th-grade Accounts. If you're preparing for your exams or looking to strengthen your understanding of goodwill, this video is perfect for you! I’m CA Parminder Singh, and in this lesson, I’ll break down the Capitalisation of Average Profit Method step-by-step. You’ll learn how to calculate goodwill by capitalising the average profits of a business. This method is particularly useful when a business has consistent profits over the years, and it's an important concept for valuing businesses during mergers, acquisitions, or partnerships. In this video, you will: Understand the concept of Capitalisation of Average Profit Method and its application in determining goodwill. Learn how to calculate the Average profit and how to adjust it for the capitalisation process & Exam Oriented Approach. This video will guide you through the entire process, ensuring that you feel confident with the topic for your exams. Don't forget to like, share, and subscribe to the channel for more helpful accounting lessons, exam tips, and tutorials.