Question

If the company has fixed assets of rs 10 lakh current asset of rs 5 lakh current liability of rs 3 lakh, investment of rs 4 lakh and fictitious assets of rs 2 lakh. capital employed will be

Answer 1

Answer:

Formula of capital employed

i)capital employed = total Assets - current Liabilities

ii) Capital employed = Total Fixed Assets + Working Capital

Now capital employed =( fixed Assets + Current Assets + Investment + Fictitious assets) - Current Liabilities

Capital employed = 10 + 5+4+2 - 3

= 21-3

= 18 lakh (Answer )