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If average profit is rupees three lakh seventy five thousand and capital employed is rupees twenty five lakh what is the actual rate of return?

Answer and explanation

Correct answer: Fifteen percent

Actual rate is found by dividing profit by capital. Rupees 375000 is fifteen percent of rupees 2500000.

Related tags

GoodwillActual-RateCapital-EmployedNumericalPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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