Which of the following reason/s leads to reconstitution of partnership?

a.

Admission of a New Partner Only

b.

Both Admission of a New Partner and Retirement of a Partner

c.

None of the options are correct

d.

Retirement of a partner Only

Oman Trading company books of account showed that the capital employed on 1-1-2020 was OMR 150,000. Calculate the Normal Profit of the business given that the normal rate of return is 5%.

a.

OMR 80,000

b.

OMR 16,000

c.

OMR 7,500

d.

None of the options are correct