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The capital employed is ₹600,000 and the normal rate of return is 8%. What is the normal profit?

Answer and explanation

Correct answer: ₹48,000 (48,000 रुपये)

Normal profit = Capital employed × Normal rate of return = ₹600,000 × 8/100 = ₹48,000. Therefore, option A is correct. Options B and C result from incorrect percentage calculations, while option D represents a subtraction-based figure rather than normal profit. Exam tip: multiply the capital employed by the normal rate of return to calculate normal profit.

Related tags

GoodwillNormal ProfitCapital EmployedPartnership AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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