Question

(Calculation of Average Profit).
M/s Hi-Tech India has assets of Rs. 5,00,000 whereas liabilities are: Partners' Capitals - Rs. 3,50,000, General Reserve - Rs. 60,000 and Sundry Creditors - Rs. 90,000. If normal rate fo return is `10%` and goodwill of the firm is valued at Rs. 90,000 at 2 years' purchase of super profit, find average profit of the firm.

Answer 1

Answer:

40/

Explanation:

50000-90000 and it's returned to 10 percent