Question 145 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 145 Chapter 4 of +2-B

Question 145 Chapter 4 of +2-B

Miscellaneous

145. From the following information related to Naveen Ltd.,
calculate (a) Return on Investment and (b) Total Assets to Debt Ratio:
Information: Fixed Assets Rs 75,00,000; Current Assets Rs 40,00,000; Current Liabilities Rs 27,00,000; 12% Debentures Rs 80,00,000 and Net Profit before Interest, Tax and Dividend Rs 14,50,000.

 

The solution of Question 145 Chapter 4 of +2-B: –

I

Net Profit before Interest & Tax = Rs 14,50,000
Capital Employed = Fixed Assets + Current Assets – Current Liabilities
  = Rs 75,00,000 + Rs 40,00,000 – Rs 27,00,000
  = Rs 88,00,000
 Return on Investment Ratio = Net Profit before Interest & Tax X 100
Capital Employed
 Return on Investment Ratio = Rs. 14,50,000 X 100
Rs 88,00,000
  = 16.48%    

II

Total Assets = Fixed Assets + Current Assets
  = Rs 75,00,000 + Rs 40,00,000
  = Rs 1,15,00,000
Long term Debts = Rs 80,00,000
Total Assets to Debts Ratio = Total Assets
Long term Debts
  = Rs. 1,15,00,000
Rs 80,00,000
  = 1.44 : 1




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

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 145 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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