Question

on 1st April 2018 a firm had assets of $140000 partners capital account showed a balance of 80000.the current liabilities were $20000 and balance constitute reserve .the goodwill of firm is valued at $72000 at four years purchase of the super profit.if normal rate of return is 10% .find the average profit of the firm​

Answer 1

Answer:

On 1st April, 2018, a firm had assets of ₹ 1,00,000 excluding stock of ₹ 20,000. The current liabilities were ₹ 10,000 and the balance constituted