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Under the weighted average method, the total weighted profit is ₹7,80,000 and the total weight is 12. What is the weighted average profit?

Answer and explanation

Correct answer: ₹65,000

Weighted average profit = total weighted profit ÷ total weight. Therefore, ₹7,80,000 ÷ 12 = ₹65,000, so option A is correct. Option B is the total weighted profit, not its average. Exam tip: always divide the total of weighted amounts by the sum of the weights.

Related tags

AccountancyGoodwillWeighted AveragePartnership AccountsProfit CalculationPartnership Accounts Basic ConceptsClass 12 Mcq

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