Question 82 Chapter 4 of +2-B – USHA Publication 12 Class

Question 82 Chapter 4 of +2-B
Q-82- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 82 Chapter 4 of +2-B

82. (Return on Investment) From the following details calculate Return on Investment

Free Accounting book Solution - Class 11 and Class 12
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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 82 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements
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