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Question 55 Chapter 7 -Unimax Publication Class 12 Part 2 – 2021

Question No -55 Chapter no - 7 Unimax Class - 12 Part -II
Question No -55 Chapter no - 7 Unimax Class - 12 Part -II

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Question 55 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

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55. Net profit after interest but before tax 2,80,000, 10% long-term debts 8,00,000; shareholder’s funds 4,80,000; tax rate 50%. Calculate return on capital employed.

The solution of Question 55 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

Return on capital employed=Net profit before interest and taxx100
Capital Employed
Calculation of profit before interest &tax: 
Net profit after interest but before tax2,80,000
+ Interest (10% on 8,00,000)80,000
Net profit before int & tax3,60,000
Capital employed=share holder’s funds + long term debts
 =4,80,000 + 8,00,000 = 12,80,000
Return on capital employed=3,60,000x100=28.13%
12,80,000

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