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Accountancy · 2024 · 3 marks
CBSE 2024 · Region 1 · Set 2 · Q32
From the given information, calculate: (a) Current Ratio (b) Return on Capital Employed
From the given information, calculate : (a) Current Ratio
(b)
Return on Capital Employed
| Particulars | Amount (₹) |
| Liquid Assets | $\displaystyle 8,00,000$ |
| Inventory | $\displaystyle 2,00,000$ |
| Current Liabilities | $\displaystyle 4,00,000$ |
| Net Profit Before Tax | $\displaystyle 12,80,000$ |
| $\displaystyle 10$% Debentures | $\displaystyle 12,00,000$ |
| Shareholders Funds | $\displaystyle 16,00,000$ |
Marking-scheme solution
(a)
Current Ratio = Current Assets
Current Liabilities
Current Assets = Liquid Assets + Inventory
= $\displaystyle 8,00,000$ + $\displaystyle 2,00,000$
= ₹$\displaystyle 10,00,000$
Current Ratio = $\displaystyle 10,00,000$ = $\displaystyle 2.5$:$\displaystyle 1$
$\displaystyle 4,00,000$
(b)
Return on Capital Employed = Net Profit before Interest and Tax x $\displaystyle 100$
Capital Employed
Net Profit before Interest and Tax = Net Profit before Tax+ Interest
= $\displaystyle 12,80,000$ + $\displaystyle 1,20,000$
= ₹ $\displaystyle 14,00,000$
Capital Employed = Shareholders’ Funds + Debentures
= $\displaystyle 16,00,000$ + $\displaystyle 12,00,000$
= ₹$\displaystyle 28,00,000$
Return on Capital Employed = $\displaystyle 14,00,000$ x $\displaystyle 100$
$\displaystyle 28,00,000$
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CBSE Class 12 Accountancy past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.