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Why are abnormal profits and abnormal …

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Why are abnormal profits and abnormal losses deducted while calculating goodwill by average profits method

Posted by Mayurakshi Choudhury 5 years, 10 months ago

CBSE > Class 12 > Accountancy

2 answers

Deepanshu Kansal 5 years, 10 months ago

shivani chaudhary. these incidents are already happen in the past years. u can see in the ques .. profits of last three, four years... and the adj. are particularly of tht year which is already gone

Shivani Chaudhary 5 years, 10 months ago

While calculating goodwill we deduct abnormal profit beacuse these are not related to bussiness activities or it does not have any relation with profit generated through business activities so while calculating goodwill we do not add it to profit similarly abnormal loss are not deducted from profit because these are not expected to happen and that's why we add up to profit

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CBSE > Class 12 > Accountancy

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Posted by Pragya Shukla 2 weeks ago

CBSE > Class 12 > Accountancy

0 answers

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CBSE > Class 12 > Accountancy

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Posted by Akash Seervi 1 week, 6 days ago

CBSE > Class 12 > Accountancy

0 answers

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CBSE > Class 12 > Accountancy

0 answers

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Posted by Payal Gurung 1 week, 4 days ago

CBSE > Class 12 > Accountancy

0 answers

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CBSE > Class 12 > Accountancy

0 answers

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CBSE > Class 12 > Accountancy

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CBSE > Class 12 > Accountancy

0 answers

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Posted by Tanya Chaudhary 1 week, 2 days ago

CBSE > Class 12 > Accountancy

0 answers

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