# Question 120 Chapter 4 of +2-B – USHA Publication 12 Class

Q-120- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 120 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

120. (Return on Capital Employed) From the following Balance sheet of ABC Ltd. as on 31st March 2018.

 BALANCE SHEET Particulars ₹ I. Equity and Liabilities Shareholders’ Funds Share Capital 2,90,000 Reserves and Surplus Profit for the year 60,000 Reserve Underwriting Commission Non Current Liabilities Long term Borrowings 1,15,000 10% Loans 15,000 Current Liabilities Trade Payable 4,80,000 II. Assets : Non-Current Assets Tangible Assets Fixed Assets 2,30,000 Current Assets 4,80,000

Calculate return on capital employed

## The solution of Question 120 Chapter 4 of +2-B: –

 Profit before Interest & Tax = ₹ 12,00,000 Add Interest = ₹ 1,00,000 = ₹ 13,00,000 Capital Employed(Asset side) = Fixed Assets + Current Assets – Current Liabilities = ₹ 29,00,000 + ₹ 25,00,000 – 8,00,000 = ₹ 46,00,000 Capital Employed(Liabilities side) = Share Capital + Reserve and Profit + Loans – Underwriting Commission = ₹ 2900,000 + ₹ 17,00,000 + ₹ 10,00,000 – ₹ 1,20,000 = ₹ 46,00,000

 Return on Capital Employed = Profit before Interest & Tax X 100 Capital Employed = ₹ 13,00,000 X 100 ₹ 46,00,000 = 28.26%

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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