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A given profit includes abnormal profit of (₹20000) in one year. How will it be treated while calculating average profit?

Answer and explanation

Correct answer: It will be deducted

Abnormal profit is not regular earning so it is deducted. Goodwill is based on normal future profit.

Related tags

GoodwillAbnormal ProfitAdjustmentPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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