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Question
Tangible assets of the firm are ₹ 14,00,000 and outside liabilities are ₹ 4,00,000. Profit of the firm is ₹ 1,50,000 and normal rate of return is 10%. The amount of capital employed will be ______.
Options
₹ 10,00,000
₹ 1,00,000
₹ 50,000
₹ 20,000
MCQ
Fill in the Blanks
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Solution
Tangible assets of the firm are ₹ 14,00,000 and outside liabilities are ₹ 4,00,000. Profit of the firm is ₹ 1,50,000 and normal rate of return is 10%. The amount of capital employed will be ₹ 10,00,000.
Explanation:
Capital employed = Tangible assets − Outside liabilities
= ₹ 14,00,000 − ₹ 4,00,000
= ₹ 10,00,000
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