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:
Option 1: Rs.50,000
Option 2: Rs.40,000
Option 3: Rs.30,000
Option 4: Rs.20,000
Answer (1)
23rd Jan, 2024
Correct Answer: Rs.50,000
Solution :
Average Profit = Rs.2,50,000.
Normal Profit = Capital employed X Normal rate of return = Rs.10,00,000 X 20% = Rs.2,00,000.
Super Profit = Average Profit - Normal Profit = Rs.2,50,000 - Rs.2,00,000 = Rs.50,000
Hence, the correct option is 1.
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