Illustration 3 Find out the average capital employed of ND Ltd. From its Balance Sheet as at 31st March, 2016: 1. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital : Equity Shares of 10 each 50.00 9% Preference Shares fully paid up 10.00 (b) Reserves and Surplus: General Reserve 12.00 Surplus Account 20.00 (2) Non-current Liabilities Secured Loans : 16% Debentures 5.00 16% Term Loan 18.00 Cash Credit 13.30 (3) Current Liabilities Sundry Creditors 2.70 Provision for Taxation 6.40 Proposed Dividend on Equity Shares 10.00 Proposed Dividend on Preference Shares 0.90 Total Equity and Liabilities 148.30 II. Assets (1) Non-current Assets (a) Fixed Assets : Land & Buildings 25.00 Plant & Machinery 80.25 Furniture & Fixtures 5.50 Vehicles 5.00 (6) Investments 10.50 (2) Current Assets Stock 6.75 Sundry Debtors 4.90 Cash and Bank 10.40 Total Assets 148.30 Non-trade investment were of $ 2,50,000. Balances as on 1-4-2015 in the following accounts were : Surplus Account $ 8.70 lakhs, General Reserve $ 6.50 lakhs