Question 18 of 45
Q.Compute average profit from the following information. 2016 : ₹ 8,000 2017 : ₹ 10,000 2018 : ₹ 9,000
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2020Subjective· 2mImportance★★★★★
40% · 18/45 Questions
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Start your 14-day free trial to unlock the full solution →Average profit = Total profit / Number of years = 27,000 / 3 = 9,000.
In the Tamil Nadu HSC Commerce (Accountancy) syllabus, the average profit method of valuing goodwill begins with the simple average of past profits.
Step 1 - Total the profits
| Year | Profit (Rs.) |
|---|---|
| 2016 | 8,000 |
| 2017 | 10,000 |
| 2018 | 9,000 |
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