On 1st April, 2019, an existing firm had assets of Rs. 75,000 including cash
Channel: Doubtnut
Date: 29/03/2020

On 1st April, 2019, 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 Partners\' 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.