Calculate the long-term debts from the following information.
| PARTICULARS | AMOUNT (₹) |
| Capital employed | 4000000 |
| Shareholder's funds | 2400000 |
| Current liabilities | 480000 |
Answer & explanation
Correct answer: option 4
Capital employed = shareholder's funds + long-term debts
4000000 = 2400000 + long term debts
Long term debts = ₹1600000