Question 129 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 129 Chapter 4 of +2-B
Question No. 129- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 129 Chapter 4 of +2-B

Return on Capital Employed (or Return on Investment) Ratio

129. Net Profit before Interest and Tax Rs. 6,00,000; Net Fixed Assets Rs.
20,00,000; Net Working Capital Rs. 10,00,000; Current Assets Rs.
11,00,000. Calculate Return on Investment.

 

The solution of Question 129 Chapter 4 of +2-B: –

 

Net Profit before Interest and Tax = Rs. 6,00,000
Capital Employed = Net Fixed Assets + Net Working Capital
  = Rs. 20,00,000 + Rs. 10,00,000
  = Rs. 30,00,000
Net Profit Ratio = Profit before Interest and Tax X 100
Capital Employed
Net Profit Ratio = Rs. 6,00,000 X 100
Rs. 30,00,000
  = 20%    

 

 

Balance Sheet: Meaning, Format & Examples

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