You are required to find out the Super profit of the business given that the normal rate of return is 5%.
You are required to find out the Super profit of the business given that the normal rate of return is 5%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alawad Company books of account showed that the capital employed on 1-1 2020 was OMR 150,000 and the profits for the last five years were as follows: Year 2015 OMR 10.000. Year 2016 OMR 20.000. Year 2017 OMR 10.000. Year 2018 OMR 25.000 and Year 2019 OMR 15.000. You are required to find out the Super profit of the business given that the normal rate of return is 5%.
a. OMR 8.500
b. OMR 16,000
c. OMR 7,500
d. None of the options are correct
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