Calculate the Normal Rate of Return if normal profit is ₹30,000. Assets ₹5,30,000 and liabilities ₹30,000, while calculating the value of goodwill of the firm at the time of admission of a partner.

6%

The correct answer is Option (2) - 6%.

Capital employed = Assets - Liabilities
                          = 530000 - 30000
                          = ₹500000

Normal profit = Capital employed x Normal rate of return/100
          30000 = 500000 x Normal rate of return/100
Normal rate of return = 30000/500000 X 100
                               = 6%