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While calculating average profit for goodwill valuation what is done with future manager salary not previously charged?

Answer and explanation

Correct answer: It will be deducted from profit

Future regular expense reduces earning capacity so it is deducted from profit. Adjust future regular expenses in exams.

Related tags

Future ExpenseAverage ProfitAdjustmentGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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