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Class 12 Accountancy Reconstitution - Admission of a Partner Goodwill AccountingExpert

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Profits for four years are ₹90000 ₹130000 ₹160000 and ₹150000. The fourth year included abnormal loss of ₹20000. What is the correct average profit?

Answer and explanation

Correct answer: ₹137500

Adding back abnormal loss makes fourth year's profit ₹170000. Average is ((90000+130000+160000+170000)/4=₹137500).

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Average Profit Abnormal Loss Adjustment Goodwill Accounting Reconstitution Admission Of A Partner Accountancy Class 12 Mcq

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