Question : If average capital employed in a firm is Rs.5,00,000, actual profit is Rs.70,000 and normal rate of return is 10%, then super profit is:
Option 1: Rs.40.000
Option 2: Rs.30,000
Option 3: Rs.50,000
Option 4: Rs.20,000
Correct Answer: Rs.20,000
Solution : Normal Profit = Capital employed X Normal rate of return = Rs.5,00,000 X 10% = Rs.50,000. Super Profit = Average Profit - Normal Profit = Rs.70,000 - Rs.50,000 = Rs.20,000 Hence, the correct option is 4.
Question : Total capital employed by a partnership firm is Rs.10,00,000 and its actual average profit is Rs.2,50,000. Normal rate of return is 20% in similar firms working under similar conditions. The firm earns super profit of:
Question : The average capital employed in a business is Rs.5,00,000 and the average net profit earned is Rs.65,000. If normal rate of return on capital employed is 8% and remuneration of Rs.20,000 is expected, then the super profit of the concern is:
Question : Capital employed by a firm is Rs.5,00,000. Its average profit is Rs.60,000. The normal rate of return in similar type of business is 10%. The amount of super profits is:
Question : The goodwill of a firm is Rs.54,000 valued at 4 years purchase of super profit. The capital employed of firm is Rs.2.00,000 and normal rate of return is 10%. The average profit of firm is:
Question : Average profit is Rs.5,00,000. Capital employed is Rs.40,00,000. Normal rate of return is 8%. The value of goodwill on the basis of capitalisation of super profit is:
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