Difference between the periodic and perpetual process
What is the main difference between the periodic and perpetual process, how will you record it in your note-book?
Expert
The periodic inventory system adjusts inventory and records costs of goods merely at the end of each and every reporting period. As you have to count you’re ending inventory by the hand. Perpetual inventory system constantly records both modifications in inventory costs and inventory quantity.
Capitalization Method: (Goodwill method): In this technique capitalized value of the firm is computed on the basis of normal rate of return. Difference between the capitalized value and real capital employed is termed as goodwill.
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