Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

Calculate the total assets from the following information.

PARTICULARS AMOUNT (₹)
Capital employed 4000000
Shareholder's funds 2400000
Current liabilities 480000

 

Options:

₹4480000

₹4000000

₹1600000

₹4840000

Correct Answer:

₹4480000

Explanation:

Total assets= Shareholder's funds + long-term debts + current liabilities
                 = 2400000 + 1600000 + 480000
                 = ₹4480000

*Capital employed = shareholder's funds + long term debts
   4000000 = 2400000 + long term debts
   Long term debts = ₹1600000