Q. 215 DK Goel Accounting Ratios Solutions Class 12 CBSE (2024-25)

the solutions of Question number 215 of Accounting Ratios chapter 5 of DK Goel Class 12 CBSE (2024-25)

Net Profit before Interest and Tax ₹ 80,000; Equity Share Capital (12,000 shares of ₹ 10 each) ₹ 1,20,000; 10% Preference Share Capital ₹ 50,000; 12% Debentures ₹ 1,00,000; Reserves and Surplus ₹ 1,30,000; Tax Rate 50%. Calculate Return on Investment.

[Ans. R.O.I 20%.]

Solution:-

Note : It is assumed that Reserves and Surplus include the Current Year’s Profit.

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