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If average profit is rupees seven lakh and it includes rent income of rupees fifty thousand that will stop in future what is adjusted profit?

Answer and explanation

Correct answer: Rupees 650000

Income that will stop in future is not maintainable earning. Therefore deduct rupees 50000 from rupees 700000 to take rupees 650000.

Related tags

GoodwillMaintainable-ProfitRent-IncomeNumericalPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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