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Past profits are (₹100000), (₹140000), (₹220000). Third year includes abnormal profit (₹60000) and future expense (₹20000) per year is expected. What is future maintainable average profit?

Answer and explanation

Correct answer: Approximately (₹113333)

After deducting abnormal profit average is ((100000+140000+160000)\div3=₹133333). Deduct future expense to get approximately (₹113333).

Related tags

GoodwillFuture ProfitAbnormal AdjustmentPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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