is bad debt an abnormal loss
what would be its effect in calculating goodwill

Dear Student
Bad Debts is not any abnormal loss.
And hence not to be addedback to profits while calculating goodwill.
Whereas items like
Any revenue likely to accrue in future from pending contracts
abnormal losses or extra ordinary losses already debited to Profir & loss A/c
Expenses debited to profit & loss A/c but not likely to occur in future.
can be added back to profits .


Regards
 

  • 0
What are you looking for?