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A firm’s normal profit is ₹54,000 and its average profit is ₹78,000. What is its super profit?

Answer and explanation

Correct answer: ₹24,000

Super profit = Average Profit − Normal Profit. Therefore, super profit = ₹78,000 − ₹54,000 = ₹24,000, so option A is correct. Exam tip: the excess of average profit over normal profit is called super profit.

Related tags

GoodwillSuper ProfitPartnership AccountsNormal ProfitAverage ProfitPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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