From the information given below, find the average profits of the partnership firm of Sudhir and Sana
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 Changed status to publish May 5, 2024