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Why salary and interest on non trading investments are added and subtracted from this sum?

Accountancy

By my understanding salary should be reduced from profit right, instead why they are adding it? For Interest on non trading investments isn't we assume that it's already added to profit right? They have not given any indication that profit does not include interest

Gokul Nath

Gokul Nath

CA Inter

★ 605

17-Mar-20 00:36

635

Answers (2)

Salary which is not payable in future will not be an expense so added back. For valuation of goodwill, not trade income are not considered.

CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

17-Mar-20 16:26

CA Suraj Lakhotia Admin

Salary which is not payable in future will not be an expense so added back. For valuation of goodwill, not trade income are not considered.

Ty. U r a life saver.

Thread Starter

Gokul Nath

Gokul Nath

CA Inter

★ 605

17-Mar-20 16:42

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