Question

Total assets and liabilities of the firm are 70000 and 10000. Average profit is? 8000.NRR 10% .calculate superprofit

Answer 1

working note :

capital employed = asset - liabilities

= 70000-10000

=60000

Normal profit = capital employed * normal rate of return/100

= 60000*10/100

=6000

super profit = average profit - normal profit

= 8000-6000

=2000

super profit = 2000

Hope its usefull.!!