&$\displaystyle 7$=r1=§IHT@31r6E%§?rQn3=rl14<>¢llult<°héQ12lu01=n€i1IQ : 33. (a) Calculate opening and closing Trade Payables from the following information : Total purchases ₹ $\displaystyle 15,00,000$, Cash purchases are $\displaystyle 25$% of credit purchases, Trade payables turnover ratio is $\displaystyle 4$ times, Closing trade payables are two times of opening trade payables.

OR

From the following information, calculate 'Return on Investment' Shareholders Funds ₹ $\displaystyle 16,00,000$ $\displaystyle 10$% Debentures ₹ $\displaystyle 8,00,000$ Current Liabilities ₹ $\displaystyle 2,00,000$ Current Assets ₹ $\displaystyle 5,00,000$ Non-Current Assets ₹ $\displaystyle 21,00,000$ Net profit after tax was ₹ $\displaystyle 3,00,000$ and the tax amounted to ₹ $\displaystyle 1,00$,000.

Trade payables turnover ratio= Net Credit purchases/ Average Trade Payables………………….1 Total purchases = Cash purchases+ Credit purchases ð ₹$\displaystyle 15,00,000$= ¼ Credit purchases + Credit purchases ð ₹$\displaystyle 15,00,000$= $\displaystyle 5$/$\displaystyle 4$ Credit Purchases ð Credit Purchases ₹$\displaystyle 15,00,000$ x $\displaystyle 4$/$\displaystyle 5$ ð Credit purchases= ₹$\displaystyle 12,00,000$…………………………………………………….……….1 $\displaystyle 14$ Trade payables turnover ratio= Net Credit purchases/ Average Trade Payables ð $\displaystyle 4$ =₹$\displaystyle 12,00,000$/ Average Trade Payables ð Average Trade Payables= ₹$\displaystyle 3,00,000$ Average Trade Payables= (Opening Trade Payables + Closing Trade Payables)/$\displaystyle 2$ ð ₹$\displaystyle 3,00,000$ = (Opening Trade Payables + $\displaystyle 2$ Opening Trade Payables)/$\displaystyle 2$ ð Opening Trade Payables= ₹$\displaystyle 3,00,000$ x $\displaystyle 2$/$\displaystyle 3$ ð Opening Trade Payables= ₹$\displaystyle 2,00,000$…………………………………………………….1 Closing Trade Payables= $\displaystyle 2$ x Opening Trade Payables ð Closing Trade Payables= $\displaystyle 2$ x ₹$\displaystyle 2,00,000$ ð Closing Trade Payables= ₹$\displaystyle 4,00,000$…………………………………………………………………………………$\displaystyle 1$ Q. (b) From the following information………. Ans. Return on Investment= Profit before interest and tax/ Capital Employed x $\displaystyle 100$………………$\displaystyle 1$ Profit before Interest and Tax= Net profit after tax + Tax + Interest on Debentures ð Profit before Interest and Tax= ₹$\displaystyle 3,00,000$ + ₹$\displaystyle 1,00,000$+ ₹$\displaystyle 80,000$ ð Profit before Interest and tax= ₹$\displaystyle 4,80,000$………………………………………………$\displaystyle 1$ Capital employed= Shareholders Funds+ Debentures ð Capital employed= ₹ $\displaystyle 16,00,000$ + ₹ $\displaystyle 8,00,000$ ð Capital employed= ₹ $\displaystyle 24,00,000$………………………………………………………..1 or Capital employed= Non-Current assets + Current Assets - Current Liabilities ð Capital employed = ₹$\displaystyle 21,00,000$ + ₹$\displaystyle 5,00,000$ - ₹$\displaystyle 2,00,000$ ð Capital employed= ₹$\displaystyle 24,00,000$ Return on investment= (₹$\displaystyle 4,80,000$/ ₹$\displaystyle 24,00,000$) x $\displaystyle 100$ ð Return on investment= $\displaystyle 20$%...........................................................................................1