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Question 79 Chapter 4 of +2-B
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Table of Contents
Return On Investment (Or Return On Capital Employed)
79. (Return on Capital Employed) Net Profit after Interest but before Tax ₹ 1,40,000. Long Term Debts ₹ 4,00,000. Shareholders funds ₹ 2,40,000. Tax rate, 50%.
Calculate the return on capital employed.
The solution of Question 79 Chapter 4 of +2-B: –
Return On Capital Employed Ratio | = | Net Profit before Interest and Tax | X | 100 |
Capital Employed | ||||
= | ||||
= | ₹ 2,00,000 | X | 100 | |
₹ 6,40,000 | ||||
= | 31.25% |
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Calculation of Net Profit before Interest and Tax
= | Net Profit + Interest on Debentures | |
= | ₹ 1,40,000 + ₹ 4,00,000 x 15% | |
= | ₹ 1,40,000 + ₹ 60,000 | |
= | ₹ 2,00,000 | |
Calculation of Capital Employed | = | Shareholder’s Funds + Debentures/LT Debts |
= | ₹ 2,40,000 + ₹ 4,00,000 | |
= | ₹ 6,40,000 |
Also, Check out the solved question of previous Chapters: –
Usha 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 (Reconstitution of Partnership)
- 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)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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