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Profits for three years are ₹125000 ₹155000 and ₹170000. The first year included abnormal profit of ₹25000. What will be the adjusted average profit?

Answer and explanation

Correct answer: ₹141667

First year's adjusted profit is (125000-25000=₹100000). Average will be ((100000+155000+170000)/3=₹141667).

Related tags

Average ProfitAbnormal ProfitNumericalGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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