Question 120 Chapter 4 of +2-B
Table of Contents
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 I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
