Read the following information and answer the following question.
| PARTICULARS | AMOUNT (₹) |
| Capital employed | 40,00,000 |
| Shareholder's funds | 24,00,000 |
| Current liabilities | 4,80,000 |
Calculate the long-term debts from the following information.
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹16,00,000.
Capital employed = Shareholder's funds + long term debts
40,00,000 = 24,00,000 + long term debts
Long term debts = ₹16,00,000