Capital employed by a partnership firm is Rs. 15,00,000. Its average profit is Rs. 1,80,000. The normal rate of return in similar type of business is 10%. What is the amount of super profits?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 30,000
Super profit = average profit − normal profit, and normal profit is the normal rate of return on the capital employed.
Normal profit = 10% of Rs. 15,00,000 = Rs. 1,50,000
Super profit = Rs. 1,80,000 − Rs. 1,50,000 = Rs. 30,000
Rs. 1,50,000 is the normal profit, the step before the super profit.
NCERT (2026-27 edition): |