But here capital employed is 200000 by liabilities side approach. I tried to calculate by asset side, my answer is coming out to be 150000, jabki answer same aane chaahiye. Please help.

Dear student, providing you the solution using both the methods of calculating the capital employed please refer to both this may help you to clear your doubt. By using liabilities side approach capital employed = Capital +reserves and other surpluses - fictitious assets (if any)=80000 + 60000 + 25000 - 15000 =150,000. Calculating Capital Employed using asset side approach = Total Assets(other than fictitious Assets) - Liabilities = Total Assets -Advertisement suspense - creditors =265,000 -15,000 - 100000=150,000. Answer in both the cases will come out to be same . Hope this will clear your confusion. Regards

  • 0
What are you looking for?