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The profits for three years are ₹65,000, ₹75,000 and ₹1,00,000, respectively. What is the average profit?

Answer and explanation

Correct answer: ₹80,000

Total profit for the three years = ₹65,000 + ₹75,000 + ₹1,00,000 = ₹2,40,000. Average profit = Total profit ÷ Number of years = ₹2,40,000 ÷ 3 = ₹80,000, so option B is correct. Option D is the total profit, not the average profit. Exam tip: Always divide the aggregate profit by the number of years to find average profit.

Related tags

GoodwillAverage ProfitPartnership AccountsAverage Profit MethodClass 12 AccountancyPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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