Accountancy, asked by sibDoctor, 1 year ago

An existing firm had assets of 4,00,000 including cash of 15,000. The partner's capital account showed a balance of 3,00,000 and reserves constituted the rest. If the normal rate of return is 12% and the goodwill is valued at 50,000 at 2.5 years purchase of super profits, find the average profits of the firm.

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Answered by unni1

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