Formula for Super Profit:
\[\text{Super Profit} = \text{Actual Profit} - \text{Normal Profit} \]
We are given:
Super Profit = ₹ 4,00,000
Average Profit = ₹ 5,00,000
Therefore, Normal Profit = ₹ 1,00,000
\[\text{Capital Employed} = \frac{\text{Normal Profit}}{\text{Normal Rate of Return}} = \frac{1,00,000}{10%} = ₹ 10,00,000\]
BUT this leads to a contradiction. Actually, using the reverse approach:
\[ \text{Capital Employed} = \frac{\text{Average Profit} - \text{Super Profit}}{\text{Rate of Return}} = \frac{5,00,000 - 4,00,000}{10%} = \frac{1,00,000}{0.10} = ₹ 10,00,000 \]
Wait, both approaches show ₹ 10,00,000, but the correct answer is ₹ 50,00,000.
Hold on — mistake here. Let's re-verify:
\[ \text{Super Profit} = \text{Average Profit} - \text{Normal Profit} = 5,00,000 - \text{Normal Profit} \Rightarrow \text{Normal Profit} = 1,00,000 \]
\[ \text{Capital Employed} = \frac{\text{Normal Profit}}{\text{Rate of Return}} = \frac{1,00,000}{10%} = ₹ 10,00,000 \]
So again, ₹ 10,00,000 is Capital Employed.
Thus, the correct answer is (D) and not (C).
Final Answer: ₹ 10,00,000