Read the following information and answer the following questions.
Net profit after tax = ₹6,50,000
12.5% debentures = ₹8,00,000
Income tax = 50%
Fixed assets at cost = ₹24,60,000
Depreciation reserve = ₹4,60,000
Current assets = ₹15,00,000
Current liabilities = ₹7,00,000
Capital employed = ₹28,00,000
Calculate the capital employed from the above information.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹28,00,000.
Capital employed = Net fixed asset + current assets - current liabilities
= (Fixed asset - Depreciation) + current assets - current liabilities
= 24,60,000 - 4,60,000 +15,00,000 - 7,00,000
= ₹28,00,000