What are the various examples of abnormal profits and abnormal losses that are to be subtracted and added back to the profit respectively while calculating goodwill through average profit method?

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Solution

Dear Student,
Abnormal losses: Loss by fire, Loss by theft, retrenchment compensation paid, voluntary retirement compensation paid, etc.
Abnormal profits: Lottery received, dividends received, gifts, legacy,etc.

Regards

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What are the various examples of abnormal profits and abnormal losses that are to be subtracted and added back to the profit respectively while calculating goodwill through average profit method?

Dear Student, Abnormal losses: Loss by fire, Loss by theft, retrenchment compensation paid, voluntary retirement compensation paid, etc. Abnormal profits: Lottery received, dividends received, gifts, legacy,etc. Regards

Dear Student,
Abnormal losses: Loss by fire, Loss by theft, retrenchment compensation paid, voluntary retirement compensation paid, etc.
Abnormal profits: Lottery received, dividends received, gifts, legacy,etc.

Regards