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Class 12 Accountancy Reconstitution - Admission of a Partner Goodwill AccountingMedium

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What does super profit mean in the super profit method of goodwill?

Answer and explanation

Correct answer: Average profit minus normal profit

Super profit is the excess of average profit over normal profit. In exams calculate normal profit first.

Related tags

Super Profit Valuation Concept Goodwill Accounting Reconstitution Admission Of A Partner Accountancy Class 12 Mcq

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