Question 82 Chapter 4 of +2-B
Table of Contents
82. (Return on Investment) From the following details calculate Return on Investment
| Preference share Capital | 1,00,000 |
| Equity share capital | 2,00,000 |
| 10% Debentures | 3,00,000 |
| General Reserve | 50,000 |
| Current liabilities | 75,000 |
| Net Profit (after debenture Interest but before Income Tax) | 50,000 |
The solution of Question 82 Chapter 4 of +2-B: –
| Return On Capital Employed Ratio | = | Net Profit before Interest and Tax | X | 100 |
| Capital Employed | ||||
| = | ||||
| = | ₹ 80,000 | X | 100 | |
| ₹ 6,50,000 | ||||
| = | 12.30% |
| Net profit before interest and Tax | = | Net Profit + Interest on Debentures |
| = | ₹ 50,000 + ₹ 30,000 | |
| = | ₹ 80,000 | |
| Capital Employed | = | Equity Share capital + Preference Share Capital + General Reserve + Debentures |
| = | ₹ 2,00,000 + ₹ 1,00,000 + ₹ 50,000 + ₹ 3,00,000 | |
| = | ₹ 6,50,000 |
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
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