From the information given below, find the average profits of the partnership firm of Sudhir and Sana:

(a) The firm has total assets of ₹ 4,80,000.

(b) The partner’s capital accounts show a balance of ₹ 4,00,000.

(c) The firm has reserves of ₹ 30,000 and creditors of ₹ 50,000.

(d) The normal rate of return from the capital invested in the same class of business is 10%.

(e) The self-generated goodwill of the firm is valued at ₹ 1,80,000 at 3 year’s purchases of super profits.

Anurag Pathak Answered question May 6, 2024
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