Past Profit for the year 2019 is 70,000( including insurance claim received 18000 and interest and dividend received 8000)
Find normal profit( question is from goodwill chapter)
Please help
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In order to find Net profit , insurance claims , interest , dividend and other claims received during the year are deducted
Thus
NET PROFIT= past profit -(insurance claims + interest and dividend)
Hence
70000-(18000+8000)=44000
Net profit= 44000
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