Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
A firm has an Average Profit of Rs 25,000 and a Capital Employed of Rs 2,00,000. The business earns a normal profit of 10%. Calculate its super profit.
Options:
Rs 25,000
Rs 20,000
Rs 15,000
Rs 5,000
Correct Answer:
Rs 5,000
Explanation:
SP = AP - NP = 25,000 - 20,000 (200000 * 10%) = 5,000