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Class 12 Accountancy Partnership Accounts - Basic Concepts GoodwillEasy

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Which information is needed to calculate normal profit?

Answer and explanation

Correct answer: Capital employed and normal rate of return

Normal profit is calculated by applying normal rate of return on capital employed. It is needed in super profit method.

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Goodwill Normal Profit Capital Employed Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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