Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
"A firm's Capital Employed is of Rs 1,00,000 and the profit is of Rs 45,000. Normal Rate of profit for similar kind of business is 20 %. Super Profit for the firm would be-"
Options:
25,000
20,000
45,000
65,000
Correct Answer:
25,000
Explanation:
"A.P = 45,000
N.P = 1,00,000 * 20% = 20,000
S.P = AP - NP = 45,000 - 20,000
25,000"