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If average profit is less than normal profit, what will be the super profit?

Answer and explanation

Correct answer: ऋणात्मक होगा या शून्य माना जा सकता है

Super profit measures the excess of average profit over normal profit. The governing formula is: Super Profit = Average Profit − Normal Profit. If average profit is less than normal profit, the subtraction produces a negative amount. For example, if average profit is ₹80,000 and normal profit is ₹1,00,000, super profit is ₹80,000 − ₹1,00,000 = −₹20,000. In elementary goodwill questions, such a negative excess is commonly described as nil because there is no positive excess earning; strictly, the calculated figure is negative. Thus, option A is the best answer. Options B, C, and D do not follow the formula and confuse super profit with average profit or capital. Positive goodwill generally requires sustainable excess earning capacity.

Related tags

GoodwillSuper ProfitNormal ProfitConceptPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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