Practicing Success
Practicing Success
CUET Preparation Today
Super profit refers to : |
Abnormal profits earned by the partnership firm. Difference between Normal profit and profit as shown by Profit and Loss A/c Difference between Average adjusted profit and Normal profit Capital multiplied by Normal Rate of Return |
Difference between Average adjusted profit and Normal profit |
The correct answer is Option (3) - Difference between Average adjusted profit and Normal profit. Super profit is earned by a firm when there actual profit is more than the normal profit i.e. profit earned by a similar business. Actual profit is adjusted against any abnormal profit and loss to calculate the adjusted profit of that particular year and then adjusted profits of all years are averaged. |
