Question 130 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 130 Chapter 4 of +2-B
Question No. 130- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 130 Chapter 4 of +2-B

Return on Capital Employed (or Return on Investment) Ratio

130. Net Profit before Interest and Tax Rs. 4,00,000; 15% Long-term Debt Rs.
Rs. 8,00,000; Shareholders’ Funds Rs. 4,00,000.
Calculate Return on Investment.

 

The solution of Question 130 Chapter 4 of +2-B: –

 

Net Profit before Interest and Tax = Rs. 4,00,000
Capital Employed = 15% long-term Debt + Shareholders’ Funds
  = Rs. 8,00,000 + Rs. 4,00,000
  = Rs. 12,00,000
Net Profit Ratio = Profit before Interest and Tax X 100
Capital Employed
Net Profit Ratio = Rs. 4,00,000 X 100
Rs. 12,00,000
  = 33.33%    

 

 

Balance Sheet: Meaning, Format & Examples

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