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The firm of blue ,black and brown had asset of ₹30lakh and liabilities of ₹24lakh the normal rate of return 10% p.a. goodwill of the firm valued at ₹72000 which is 4 times the average super profit of the firm calculate the average profit?
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The firm of blue ,black and brown had asset of ₹30lakh and liabilities...
Calculation of Average Profit:

Given Data:
- Total Assets = ₹30 lakh
- Total Liabilities = ₹24 lakh
- Goodwill Value = ₹72,000
- Goodwill Value = 4 times the Average Super Profit
- Normal Rate of Return = 10% p.a.

Step 1: Calculation of Goodwill Super Profit
- Goodwill = 4 x Average Super Profit
- Goodwill = ₹72,000
- Average Super Profit = ₹72,000 / 4
- Average Super Profit = ₹18,000

Step 2: Calculation of Total Capital Employed
- Total Capital Employed = Total Assets - Total Liabilities
- Total Capital Employed = ₹30 lakh - ₹24 lakh
- Total Capital Employed = ₹6 lakh

Step 3: Calculation of Normal Profit
- Normal Profit = Total Capital Employed x Normal Rate of Return
- Normal Profit = ₹6 lakh x 10%
- Normal Profit = ₹60,000

Step 4: Calculation of Average Profit
- Average Profit = Normal Profit + Average Super Profit
- Average Profit = ₹60,000 + ₹18,000
- Average Profit = ₹78,000
Therefore, the Average Profit of the firm is ₹78,000.
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The firm of blue ,black and brown had asset of ₹30lakh and liabilities of ₹24lakh the normal rate of return 10% p.a. goodwill of the firm valued at ₹72000 which is 4 times the average super profit of the firm calculate the average profit?
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The firm of blue ,black and brown had asset of ₹30lakh and liabilities of ₹24lakh the normal rate of return 10% p.a. goodwill of the firm valued at ₹72000 which is 4 times the average super profit of the firm calculate the average profit? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The firm of blue ,black and brown had asset of ₹30lakh and liabilities of ₹24lakh the normal rate of return 10% p.a. goodwill of the firm valued at ₹72000 which is 4 times the average super profit of the firm calculate the average profit? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The firm of blue ,black and brown had asset of ₹30lakh and liabilities of ₹24lakh the normal rate of return 10% p.a. goodwill of the firm valued at ₹72000 which is 4 times the average super profit of the firm calculate the average profit?.
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