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Question
The books of Mehul and Barkha showed that their capital employed on 31st March, 2025, was ₹ 6,00,000. If the normal profits are ₹ 60,000 and the super profits are ₹ 20,000, then the normal rate of return is ______.
Options
6%
15%
30%
10%
MCQ
Fill in the Blanks
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Solution
The books of Mehul and Barkha showed that their capital employed on 31st March, 2025, was ₹ 6,00,000. If the normal profits are ₹ 60,000 and the super profits are ₹ 20,000, then the normal rate of return is 10%.
Explanation:
Normal rate of return = `"Normal profit"/"Capital Employed" xx 100`
= `(60,000)/(6,00,000) xx 100`
= 10%
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