Model employed and average capital employed—Computation of You are required to calculate (a) capital employed and (b) average capital employed from the following balance sheet:
|
Liabilities |
Assets |
||
|
12% Preferences Share Capital |
1,00,000 |
Goodwill |
30,000 |
|
Equity Share Capital |
3,00,000 |
Land & Buildings |
90,000 |
|
Reserves (Including a Profit of ? 50,000 |
90,000 |
Plant |
1,50,000 |
|
for Current Year |
Current Assets |
4,00,000 |
|
|
Workmen Compensation Fund |
60,000 |
Investments |
70,000 |
|
Depreciation Fund: |
Investments for Replacement of Plant |
30,000 |
|
|
Land & Buildings 30,000 |
Preliminary Expenses |
10,000 |
|
|
Plant 30.000 |
60,000 |
||
|
Debentures |
90,000 |
||
|
Creditors |
80,000 |
||
|
7,80,000 |
7,80,000 |