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The average profit is ₹1,20,000 and the normal profit is ₹95,000. What is the super profit?

Answer and explanation

Correct answer: ₹25,000

Super profit = Average Profit − Normal Profit. Therefore, Super Profit = ₹1,20,000 − ₹95,000 = ₹25,000. Option B represents only the normal profit, not the super profit. Exam tip: Always subtract normal profit from average profit to calculate super profit.

Related tags

Partnership AccountsGoodwillSuper ProfitAverage ProfitPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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