Capital Employed by a partnership firm is ₹350000. Its average profit is ₹60,000. The normal rate of return in a similar type of business is 10%. What are the super-profits earned by the partnership firm?
Answer & explanation
Correct answer: option 1
Normal profit= 350000*10/100 = ₹35000
Super profit= 60000 -35000 = ₹25000