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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following information, calculate Net Assets Turnover Ratio: Equity Share Capital ₹15,00,000; Long-term Borrowings ₹30,00,000; Reserves and Surplus ₹5,00,000; Non-current Assets ₹32,00,000; Revenue from Operations ₹1,00,00,000.
Net Assets (Capital Employed) = Equity Share Capital + Reserves and Surplus + Long-term Borrowings
= 15,00,000 + 5,00,000 + 30,00,000 = ₹50,00,000
Net Assets Turnover Ratio = Revenue from Operations ÷ Net Assets = 1,00,00,000 ÷ 50,00,000 = 2 times
(Note: Non-current Assets is not required for this calculation, since Capital Employed is derived from the equity and long-term liabilities side.)
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 3 Chapter 4 Q.129 - Accounting Ratios", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Accounting Ratios.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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