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Question 54 Chapter 7 -Unimax Publication Class 12 Part 2 – 2021

Question No -54 Chapter no - 7 Unimax Class - 12 Part -II
Question No -54 Chapter no - 7 Unimax Class - 12 Part -II

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Question 54 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

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54. From the following calculate return on investment (or return on capital employed)

S.NO.ItemsAmount
1.Share capital1,00,000
2.Reserve and surplus50,000
3.Net fixed assets4,50,000
4.Non-current trade investments50,000
5.Current assets2,20,000
6.12% long term borrowings4,00,000
7.Current liabilities1,70,000

Net profit before tax 1,20,000.

The solution of Question 54 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

Return on investment or return on capital employed=Net profit before interest and taxx100
Capital Employed
Net profit before tax1,80,000
Add: 12% on 6,00,00072,000
Net profit before int & tax2,52,000
Capital employed=share capital + reserve & surpluses + 12% long term borrowings
 =1,50,000 + 75,000 + 6,00,000 + = 8,25,000
Return on investment or return on capital employed=2,52,000x100=30.54
8,25,000

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