Question

The books of Ashish and Vishesh showed that their capital employed on 31^st March, 2025, was ₹ 4,00,000. If the normal profits are ₹ 60,000 and super profits are ₹ 40,000, the normal rate of return is ______.

Options

• 10%

• 25%

• 15%

• 4%

Answer 1

The books of Ashish and Vishesh showed that their capital employed on 31^st March, 2025, was ₹ 4,00,000. If the normal profits are ₹ 60,000 and super profits are ₹ 40,000, the normal rate of return is 15%.

Explanation:

Normal profit = 60,000

Capital employed = 4,00,000

Normal profit = `"Capital employed" xx "Normal rate of return"/100`

60,000 = `4,00,000 xx "Normal rate of return"/100`

Normal rate of return = `(60,000 xx 100)/(4,00,000)`

Normal rate of return = 15%