[CBSE] DK Goel Q. 20 Change in Profit Sharing Ratio Solutions Class 12 (2026-27)
Solution of Question 20 of Change in Profit sharing ratio DK Goel Class 12 CBSE (2026-27)
A firm’s average net profits of last four years were 2,50,000. It includes an abnormal gain of ₹ 19,000 each year. The firm had assets of15,50,000including cash of 20,000, Debtors * 2,35,000 and Stock1,15,000. Its creditors were 3,00,000 and outstanding expenses 50,000. The value the goodwill as per the capitalization of average profit method was valued
at 4,50,000.
Find out the Normal Rate of Return.
[Ans. Normal Rate of Return is 14%.]
Solution:
