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Question
| A, B and C were partners sharing profits in the ratio of 2 : 2 : 1, decided to share future profits in 1 : 2 : 3. On this date firm had assets of ₹ 3,80,000 including cash of ₹ 20,000. The partners' capital accounts showed a balance of ₹ 3,00,000 and reserves constituted the rest. Normal rate of return is 10% and goodwill of the firm is valued at ₹ 75,000 at 3 years' purchase of super profits. |
On the basis of the above information, answer the following:
Super Profit will be:
Options
₹ 2,25,000
₹ 13,000
₹ 25,000
₹ 75,000
MCQ
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Solution
₹ 25,000
Explanation:
Goodwill = Super Profit × 3 years's purchase
75,000 = Super Profit × 3
Super Profit = `(75,000)/3`
= ₹ 25,000
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