Question 56 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021
Table of Contents
56. From the following details, calculate ‘return on capital employed’.
Gross profit 2,00,000, Office and Administrative expenses 20,000; Selling and Distribution expenses 50,000; Interest on long-term debts 16,000; Tax 24,000; Non-current Assets 6,00,000. Current Assets 3,00,000 and Current liabilities 2,50,000.
The solution of Question 56 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –
| Return on capital employed | = | Net profit before interest and tax | x | 100 |
| Capital Employed |
| Net profit before interest and tax | = | Gross profit – Office and Administrative Exp. – Selling and distribution Exp. |
| = | 2,00,000 – 20,000 – 50,000 | |
| = | 1,30,000 | |
| Capital employed | = | Non-current assets + Current Assets – Current Liabilities |
| = | 6,00,000+ 3,00,000 – 2,50,000 | |
| = | 6,50,000 |
| Return on capital employed | = | 1,30,000 | x | 100 | = | 20% |
| 6,50,000 |
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
