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Question

Read the following information carefully and answer the question.

The Balance Sheet of ABC Ltd as of 31 March 2022:

LiabilitiesAmount (₹)AssetsAmount (₹)
Share capital4,00,000Fixed Assets9,50,000
Equity (₹10)-Current Assets2,34,000
12% preference shares1,00,000--
General Reserve1,84,000--
10% Debentures4,00,000--
Current Liabilities1,00,000--
Total11,84,000Total11,84,000

Additional information:

  1. Market price of share = ₹34
  2. Net profit after tax = ₹1,50,000
  3. Tax = ₹50,000

The return on investment will be:

The correct answer is

22.14%

Return on Investment (ROI) = (Net Profit After Tax ÷ Total Investment) × 100.

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Important Questions from Accounting Ratios

  1. Calculate the amount of fixed obligation of the company.

  2. Earning Per Share (EPS) will be:

  3. The Price Earning (P/E) ratio will be:

  4. Match List I with List II:

    LIST ILIST II
    A. Operating Profit Ratio I. Solvency Ratios
    B. Working Capital Turnover RatioII. Liquidity Ratios
    C. Debt-Equity RatioIII. Activity Ratios
    D. Quick RatioIV. Profitability Ratios

    Choose the correct answer from the options given below:

  5. Match List I with List II:

    Particulars Amount (₹)
    Inventory at the beginning40,000
    Credit Purchase1,60,000
    Inventory at the end38,000
    Trade payable at the beginning14,000
    Trade payable at the end14,500

    Cash paid for inventory is:

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