Maharashtra State BoardHSC Commerce 12th Board Exam
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While Calculating the Average Profit, the Losses Are Ignored. - Book Keeping and Accountancy

While calculating the average profit, the losses are ignored.
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Solution

False

Explanation:

At the time of calculation of average profit, total profit for the given number of years is ascertained by calculating the sum of profits and the losses (i.e. adding the profits and deducting the losses). That is to say, profits increases the total profit and losses reduce it.

Concept: Admission of a Partner - Adjustment of Accumulated Profits and Losses
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