Question

(Calculation of Average Profit).
On 1st April, 2018, a firm had assets of Rs. 3,00,000 including cash of Rs. 5,000. The Partners' Capital Accounts showed a balance of Rs. 2,00,000 and the Reserve constituted the rest. If the normal rate Of return is `10%` and the goodwill of the firm is valued at Rs. 2,00,000 at four years' purchase fo super profit, find the average profit of the firm.

Answer 1

Answer is

(Calculation of Average Profit).

On 1st April, 2018, a firm had assets of Rs. 3,00,000 including cash of Rs. 5,000. The Partners' Capital Accounts showed a balance of Rs. 2,00,000 and the Reserve constituted the rest. If the normal rate Of return is `10%` and the goodwill of the firm is valued at Rs. 2,00,000 at four years' purchase fo super profit, find the average profit of the firm.

Mark me as brainlist