Question 52 Chapter 7 -Unimax Publication Class 12 Part 2

Question 52 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

Table of Contents

52. From the following calculate return on investment.

Share capital	1,00,000
Reserve and surplus	50,000
Net fixed assets	4,50,000
Non-current trade investments	50,000
Current assets	2,20,000
12% long term borrowing	4,00,000
Current liabilities	1,70,000
Net profit before tax	1,20,000

The solution of Question 52 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

Return on investment or return on capital employed	=	Net profit before interest and tax	x	100
		Capital Employed

Capital employed	=	share capital + reserve & surpluses + 12% long term borrowings
	=	1,00,000 + 50,000 + 4,00,000 + = 5,50,000

Return on investment or return on capital employed	=	1,68,000	x	100	=	30.54%
		5,50,000

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Accounting Ratios – Meaning and Definition

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Chapter No. 1 – Company Accounts (Share Capital)
Chapter No. 2 – Company Accounts (Issue of Debentures)
Chapter No. 3 – Company Accounts (Redemption of Debentures)
Chapter No. 4 – Financial Statements of a Company
Chapter No. 5 – Financial Statement Analysis
Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 7 – Ratio Analysis
Chapter No. 8 – Cash Flow Statement