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Goodwill
Accountancy
What is mean by " remuneration from alternative employment of the proprietor " mentioned here and we are not account for it in the profit and loss account but accounting here?
Answers (3)
Abhishek Purohit
It is his opportunity cost which he would have earned had he not engaged in the business.
Here in the case of Valuation of Goodwill we only consider the Operating And recurring expense of the business which is related to business. But this remuneration why is it given as it is mentioned not engaged in business ?
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