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Average profit is ₹60000 and normal profit is ₹80000. What will be the conclusion under super profit method?

Answer and explanation

Correct answer: There is no super profit

Average profit is less than normal profit so there is no super profit. In this case positive goodwill will not arise.

Related tags

GoodwillSuper ProfitNegative CasePartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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