Question

Rotis
23. Arjun, Bhim and Nakul are partners sharing profits and losses in
the ratio of 14:5:6 respectively. Bhim retires and surrenders his 5/25
share in favour of Arjun. The goodwill of the firm is valued at 2 years
purchase of super profit based on average profit of the last 3 years.
The profits of the business for the last three years are 50,000/- 55,
000/- and * 60, 000/- respectively. The normal profit of the firm

Answer 1

Explanation:

Profit is caalculate be deducting direct cost such as materials and laburd and indirect cost (also know as overheads)frome sales.