Question

1) Capital employed x NRR /100 = ​

Answer 1

Answer:

Capital employed × NRR/100 = Concept : Admission of a partner.

Answer 2

This is equal to normal profit.

• It requires the least amount of profit to survive. Reflects the company's profitability.
• It is one of the components of godwill.
• The formula for normal profit is written and further calculated as -
• Normal profit = Capital employed x Normal rate of return/100
• Therefore, in this formula -
• Capital employed = Total assets -  All the external liabilities