Given information:
- Assets of the firm = 10 lakhs
- Liabilities of the firm = 7 lakhs
- Normal rate of return = 10%
- Goodwill value = 4 times the average super profit of the firm = Rs 18000

Finding the average profit of the firm:

Step 1: Calculate the net assets of the firm
Net assets = Assets - Liabilities
Net assets = 10 lakhs - 7 lakhs
Net assets = 3 lakhs

Step 2: Calculate the normal profit of the firm
Normal profit = Net assets x Normal rate of return
Normal profit = 3 lakhs x 10%
Normal profit = Rs 30,000

Step 3: Calculate the super profit of the firm
Super profit = Goodwill value / 4
Super profit = Rs 18,000 / 4
Super profit = Rs 4,500

Step 4: Calculate the total profit of the firm
Total profit = Normal profit + Super profit
Total profit = Rs 30,000 + Rs 4,500
Total profit = Rs 34,500

Step 5: Calculate the average profit of the firm
Average profit = Total profit / 2
Average profit = Rs 34,500 / 2
Average profit = Rs 17,250

Therefore, the average profit of the firm is Rs 17,250.

Explanation:

- The firm's assets and liabilities are given, which are used to calculate the net assets of the firm.
- The normal rate of return is given, which is used to calculate the normal profit of the firm.
- The goodwill value is given, which is used to calculate the super profit of the firm.
- The total profit of the firm is calculated by adding the normal profit and super profit.
- The average profit of the firm is calculated by dividing the total profit by 2, as the question asks for the average profit.
- This method is used to calculate the average profit of the firm based on the given information.

Capital Emplyed = Total Assets - Total Liabilities = 10L - 7L=3L.
Normal Profit = capital employed ×normal rate ofreturn = 300000×10% = 30000. Goodwill = super profit ×4 or, super profit = goodwill ÷4 =18000÷4 = 4500. Again, Average profit = Normal Profit + super profit = 30000+4500= 34500