What is meant by Average Profit?
It is the average of the normal profits of past agreed years.
the profits of the past three years are ₹ 50,000, 60,000, and 40,000.
Thus average profit of the past three years
50,000 + 60,000 + 40,000/3 = ₹ 50,000
Anurag Pathak Changed status to publish April 20, 2023