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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

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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 tax x 100 Capital Employed
 Calculation of profit before interest &tax: Net profit after interest but before tax 2,80,000 + Interest (10% on 8,00,000) 80,000 Net profit before int & tax 3,60,000
 Capital employed = share holder’s funds + long term debts = 4,80,000 + 8,00,000 = 12,80,000
 Return on capital employed = 3,60,000 x 100 = 28.13% 12,80,000

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