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The profits of a partnership firm for the last three years were ₹24,000, ₹36,000, and ₹48,000, respectively. What is the average profit?

Answer and explanation

Correct answer: ₹36,000

Average profit = Total profit of all years ÷ Number of years. Here, total profit = ₹24,000 + ₹36,000 + ₹48,000 = ₹1,08,000, and the number of years is 3. Therefore, average profit = ₹1,08,000 ÷ 3 = ₹36,000. Option D is the total profit, not the average profit. In exams, always divide the total profit by the number of years to find average profit.

Related tags

Partnership AccountsGoodwillAverage ProfitMean CalculationPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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