Question

Ajith and baljit sharing profits in ratio 3:2 they decided to admit chaman into partnership for a

Answer 1

Explanation:

$\huge{Answer:}$

✔️In this question, we have to first find out the super profit and then ascertain average profit from it.

Goodwill = Super profit * No. of years' purchase

ie; 18,000 = Super profit *4

so, super profit = 18000/4 = 4500.

⭐Now ,the capital employed in the business = 15 lakhs - 12 lakhs = 3 lakhs [assets - liabilties]

and, the normal profit = capital employed*Normal rate of return/100 = 300,000*10/100 = 30,000.

⭐You might have learned that Super profit = Average profit - Normal profit.

ie; Average profit= Super profit + Normal profit

ie; Average profit = 30,000+4500 = 34500.

⭐Hence, the average profit of the firm is Rs.34500.

#Regards❤️