Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

From the following information calculate Average Profit of the firm.
Years  Profits(₹)
2015   50,000
2016   1,00,000
2017   1,30,000
2018   30,000 ( Loss)
2019   2,00,000

Options:

₹4,80,000

₹96,000

₹90,000

₹93,000

Correct Answer:

₹90,000

Explanation:

A. P = (50,000 + 1,00,000 + 1,30,000 + 2,00,000 - 30,000)/ 5
       = (4,80,000 - 30,000) /5
       = 4,50,000/5
       = 90,000