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If average adjusted profit is rupees four lakh capital employed is rupees fifteen lakh and normal rate of return is twelve percent what is super profit?

Answer and explanation

Correct answer: Rupees 220000

Normal profit is twelve percent of rupees 1500000 which is rupees 180000. Deducting it from rupees 400000 gives super profit of rupees 220000.

Related tags

GoodwillSuper-ProfitNormal-ProfitNumericalPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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