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Under the weighted average profit method, the total weighted profit is ₹5,40,000 and the total weight is 9. What is the weighted average profit?

Answer and explanation

Correct answer: ₹60,000

The formula for weighted average profit is \(\text{Total weighted profit} \div \text{Total weights}\). Therefore, \(₹5,40,000 \div 9 = ₹60,000\), so option A is correct. Option C would result from dividing by 6 instead of the given total weight of 9. In the exam, write the formula first and then divide the total weighted profit by the total weight.

Related tags

GoodwillWeighted Average ProfitPartnership AccountsProfit CalculationPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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