# Question 147 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question No. 147- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 147 Chapter 4 of +2-B

Miscellaneous

147. From the following informations, calculate Return on Investment or Return on Capital Employed :

 Rs Share Capital 5,00,000 Reserves and Surplus 2,50,000 Net Fixed Assets 22,50,000 Non-current Trade Investments 2,50,000 Current Assets 11,00,000 10% Long-term Borrowings 20,00,000 Current Liabilities 8,50,000 Long-term Provision Nil

### The solution of Question 147 Chapter 4 of +2-B: –

I

 Net Profit before tax = Rs 6,00,000 Net Profit before interest, tax and dividend = Net Profit before tax + Interest on long-term borrowings = Rs 6,00,000 + Rs 2,00,000 = Rs 8,00,000 Capital Employed = Share Capital + Reserves and Surplus + Long-term borrowings = Rs 5,00,000 + Rs 2,50,000 + Rs 20,00,000 = Rs 27,50,000
 Return on Investment Ratio = Net Profit before interest, tax and dividend X 100 Capital Employed
 Return on Investment Ratio = Rs. 8,00,000 X 100 Rs 27,50,000 = 29.09%

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