 Question 92 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

92. (Return on investment/Total Asset to Debt Ratio) From the following information calculate (a) Return on investment and (b) Total Assets to Debt Ratio Fixed Assets ₹ 15,00,000; Current Assets ₹ 8,00,000; Current Liabilities ₹ 5,40,000; 10% Public Deposits ₹ 16,00,000; Net Profit Before Interest Tax and dividend ₹ 2,90,000

## The solution of Question 92 Chapter 4 of +2-B: –

 (a) Return on investment = Net profit before interest, Tax & Dividend X 100 Investment = = ₹ 2,90,000 X 100 ₹ 17,60,000 = 16.48%

 (b) Total Assets to Debt Ratio = Total Assets Long Term Debt = = ₹ 23,00,000 ₹ 16,00,000 = 1.44: 1

 Investment = Fixed Assets + Current Assets – Current Liabilities = ₹ 15,00,000 + ₹ 8,00,000 – 5,40,000 = ₹ 17,60,000 Total Assets = Fixed Assets + Current Assets = ₹ 15,00,000 + ₹ 8,00,000 = ₹ 23,00,000 Long Term debt = Public Deposits = ₹ 16,00,000

Also, Check out the solved question of previous Chapters: –

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

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