Question

Average profit is Rs.50000. Goodwill based on two year's purchase of super profit is Rs.60000. Normal profit is (a)10000 (b)35000 (c)20000 (d)None of these​

Answer 1

Answer:

(c). 20,000

Normal Profit = 20,000

Explanation:

Given :

• Average profit is Rs.50,000
• Goodwill = Rs 60,000
• No. of year Purchases = 2 years

To find :

• Normal profit

Solution :

Goodwill = Super Profit × No. of year Purchases

$\longrightarrow$ 60,000 = Super Profit × 2

$\sf{\longrightarrow \: Super \: Profit \: = \: \dfrac{60,000}{2}}$

$\longrightarrow$ 30,000

Super Profit = 30,000

Super Profit = Average Profit - Normal Profit

$\longrightarrow$ 30,000 = 50,000 - Normal Profit

$\longrightarrow$ Normal Profit = 50,000 - 30,000

$\longrightarrow$ Normal Profit = 20,000

∴ (c). 20,000

Normal Profit = 20,000