On 1st April, 2023, a partnership firm had assets of ₹ 2,00,000 including cash of ₹ 6,000 and bank balance of ₹ 14,000

On 1st April, 2023, a partnership firm had assets of ₹ 2,00,000 including cash of ₹ 6,000 and bank balance of ₹ 14,000. The partner’s capital accounts showed a balance of ₹ 1,90,000 and reserves constituted the rest. If the normal rate of return is 10% and the goodwill of the firm is valued at ₹ 60,000 at 4 years purchase of super profits, find the average profits of the firm.

[Ans.: Average Profit – ₹ 35,000; Super Profit – ₹ 15,000; Normal Profit – ₹ 20,000.]