Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

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.

Options:

₹18,00,000

₹20,00,000

₹19,00,000

₹16,00,000

Correct Answer:

₹16,00,000

Explanation:

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