Accounts 0452

[Anony_mouse24]

I used the capital employed formula, capital employed= capital+non current liabilities and and also cap. employed=Assets - current liabilities and for both I got 350,000 as the capital employed

http://www.readyratios.com/reference/analysis/capital_employed.html

Using capital employed=capital+non current liabilities
Ordinary share capital 250000 at 0.5 dollars= 125000
Preference share capital 100000 at 1 dollar=100000
Debentures=50000
Long term loan = 10000

10000+50000+125000+100000= 285000

so how did u get 350000?

 

[DXDEVIL130]

Using capital employed=capital+non current liabilities
Ordinary share capital 250000 at 0.5 dollars= 125000
Preference share capital 100000 at 1 dollar=100000
Debentures=50000
Long term loan = 10000

10000+50000+125000+100000= 285000

so how did u get 350000?

You forgot to add retained earnings to the capital, which was 65000, so 285000+65000= 350,000

 

[Anony_mouse24]

You forgot to add retained earnings to the capital, which was 65000, so 285000+65000= 350,000

Oh!

 

[DXDEVIL130]

Oh!

But I don't think they'll cut more than a mark for that, so no big deal

 

[Anony_mouse24]

But I don't think they'll cut more than a mark for that, so no big deal

hopefully!

 

[O/A-Levels Tuitionś]

If you want to learn from the comfort of your own home, I am available to teach IGCSE/Olevels subjects online via Skype ...

Subjects :
Biology
Chemistry
Physics
Mathematics
English
Urdu
Pakistan studies
Economics

I've got lots of helpful resources and study tips to help you ace your IGCSE exams. My working hours are also quite flexible.

Did you know the best way to learn is by having a student teach you? That's because they can understand you better because they had the same exact confusions once. That's why group studying works so well!

If you'd like more information, feel free to contact me.