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8 You are required to calculate: i) Rate of Return on Equity capital ii) Rate of Return on Total iii) Earnings per share Balance Sheet
8
You are required to calculate:
i) Rate of Return on Equity capital
ii) Rate of Return on Total iii) Earnings per share
Balance Sheet (Rs.) (Rs.) Capital: 5,000 Equity shares Machinery 40000 ofRs. 10 each 50,000 Stock 1,00,000 VW 8%.,2,000 Preference Trade debtors 60000 Shares of Rs, 10 each 20,000 Investments 24000 Profit and loss a/c 44,000 Cash Bal. 20,00 5% Debentures 80,000 Bills payable 30,000 Taxes payable 20,000 profit and loss ac dr 44,000 2,44,000 Profit and loss Ac Cr (Rs.) (Rs.) To opening 80,000 By sales 2,40,000 To purchases 1,20,000 By closing stock L00,000 To Gross profit 1,40,000 3,40,000 3,40,000 To Administrative By Gross profit 1,40,000 Expenses 40,000 To selling and Distribution Expenses 30,000 To interest 4,200 To income tax 29,800 To income tax 29,800 To Net profit 36,000 1,40,000 1,30,000Step by Step Solution
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