Under the super profit method, what is super profit?

Correct answer: Average profit minus normal profit

Super profit is the excess of actual or average maintainable profit over the normal profit expected from the capital employed at the normal rate of return. The standard formula is Super Profit = Average Profit − Normal Profit. Normal profit itself is generally calculated as Capital Employed × Normal Rate of Return / 100. This excess earning is considered evidence of goodwill because the firm earns more than a comparable business would normally earn. Therefore option A is correct. Option B is unrelated to profit measurement, option C gives a trading calculation such as gross profit before adjustments, and option D has no accepted accounting meaning in goodwill valuation.