Find out the capital employed from the following information:
Total assets = ₹2300000
Liabilities = ₹590000
Assets include non-trade investments of ₹100000 and liabilities include reserves of ₹30000.
Answer & explanation
Correct answer: option 1
Capital employed = (Assest - nontrade Investment) - (liabilities- reserves)
= (2300000-100000) - ( 590000-30000)
= 2200000-560000
= ₹1640000