On 10 April 2016 an existing firm had assets of Rs. 75000 including cash of Rs. 5000. The
partners capital account showed a balance of Rs. 60000 and reserve constituted the rest. If the
normal rate of return is 20% and the goodwill of the firm is valued at Rs. 24000 at 4 years
purchase of super profit, find the average profit of the firm
Answers
Answered by
2
Answer:
Normal profit=capital employed×rate of return/100
Capital employed =asset -liability
=75000-60000
=15000
NP=15000×20/100
=3000
Goodwill=super profit×purchase year
24000=SP×4
24000/4 =SP
6000 = SP
Super profit= average profit -normal profit
6000=AP-3000
6000+3000=SP
9000=AP
Average profit =9000
Answered by
0
Answer:
Normal profit=capital employed×rate of return/100
Capital employed =asset -liability
=75000-60000
=15000
NP=15000×20/100
=3000
Goodwill=super profit×purchase year
24000=SP×4
24000/4 =SP
6000 = SP
Super profit= average profit -normal profit
6000=AP-3000
6000+3000=SP
9000=AP
Average profit =9000
Explanation:
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