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 |
| Net profit before tax | 1,20,000 |
| Add: 12% on 4,00,000 | 48,000 |
| Net profit before int & tax | 1,68,000 |
| 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 |
Thanks, Please Like and share with your friends
Comment if you have any Doubts.
Accounting Ratios – Meaning and Definition
Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit sharing ratio among Existing Partners )
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution
- 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
Check out T.S. Grewal +2 Book 2023@ Official Website of Sultan Chand Publication
