Read the following information and answer the following question.
| PARTICULARS | AMOUNT (₹) |
| Gross profit | ₹1,00,000 |
| Working capital | ₹25,000 |
| Office and administrative expenses | ₹10,000 |
| Selling and distribution expenses | ₹25,000 |
| Interest on long-term debts | ₹8,000 |
| Tax | ₹12,000 |
| Non-current assets | ₹3,00,000 |
| Current assets | ₹1,50,000 |
| Current liabilities | ₹1,25,000 |
Calculate the capital employed of the company.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹3,25,000.
Capital employed = Non-current assets + working capital
= Non-current assets + (Current assets - Current liabilities)
= 3,00,000 + 25,000
= ₹3,25,000