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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 the 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
Solution
₹ 10,00,000
Explanation:
Capital Employed = Tangible Assets − Outside Liabilities
= ₹ 14,00,000 − ₹ 4,00,000
= ₹ 10,00,000
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