Capital Employed in a partnership firm is ₹50,00,000. Its average profit is ₹6,00,000. The normal rate of return in similar type of business is 10%. The amount of super profit is:

₹1,00,000

The correct answer is option 4- ₹1,00,000.

Normal profit = Capital employed x Normal rate of return/100
                     = 50,00,000 x 10/100
                     = 5,00,000

Average profit = 6,00,000

Super profit = Average profit - Normal profit
                   = 6,00,000 - 5,00,000
                   = 1,00,000