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Class 12 Accountancy Partnership Accounts - Basic Concepts GoodwillEasy

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If average profit is less than normal profit what will be the conclusion under super profit method?

Answer and explanation

Correct answer: There is no super profit

Super profit exists only when profit is above normal profit. If average profit is lower there is no positive super profit.

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Goodwill Super Profit Negative Case Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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