Question

Profit of last 4 years are 60000,40000,50000,30000 respectly.
Machinary worth 20000 purchase on 2nd year charge to purchase account . Rate of depreciation 10% dimmincing balance. Find the avarage profit.

Answer 1

60000+40000+50000+30000+20000/4 = 50000

Less : dep = (2000)
______ Average profit = 48000