# Question 56 Chapter 7 -Unimax Publication Class 12 Part 2 – 2021

Question No -56 Chapter no - 7 Unimax Class - 12 Part -II

Question 56 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

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

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