"Theassets of the business were of Rs 10,00,000
and it's external Liabilities of Rs 2,50,000. The normal rate of return
for same business is 10%. Normal Profit would be -"
Answer & explanation
Correct answer: option 4
"Capital Employed = Total Assets - External Liabilities
= 10,00,000 - 2,50,000
= 7,50,000
NP = Capital Employed * NRR
= 7,50,000 * 10%
= 75,000"
= 10,00,000 - 2,50,000
= 7,50,000
NP = Capital Employed * NRR
= 7,50,000 * 10%
= 75,000"