On April 1st 2015, an existing firm had assets of Rs. 5,00,000 including cash of Rs. 20,000. the firm had a General Reserve of Rs. 90,000, partner's capital accounts showed a balance of Rs. 3,80,000 and creditors amounted to Rs. 30,000. If the normal rate of return is 20% and the goodwill of the firm is valued at Rs. 64,000 at 4 year's purchase of super profit, find the average profits of the firm.

Explanation

Rs. 1,10,000.