What is meant by abnormal profit?

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Solution

Normal loss implies that misfortune that is innate in the preparing activities. It very well may be normal or expected ahead of time, for example at the hour of assessment, and production. In accounting treatment, if there is no abnormal gain or addition, then, at that point, there is no need to keep a different record for the normal loss.

Also see: Abnormal Loss

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While calculating goodwill by average profits method, any abnormal income of a year should be ___out of the net profit of that year.

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