Question No 17 of TS Grewal (CBSE)

On 1st April, an existing firm had assets of Rs. 75,000 including cash of Rs. 5,000. Its creditors amounted to Rs. 5,000 on that date. The firm had a reserve of Rs. 10,000 while partner’s Capital Accounts showed a balance of Rs. 60,000. If Normal Rate of Return is 20% and goodwill of the firm is valued at Rs. 24,000 at four years’ purchase of super profit, Find average profit per year of the existing firm.

Solution No 17 of TS Grewal (CBSE)

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