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    Question

    Calculate Rate of Return on Shareholders'

    Funds Refer the following summarized Balance Sheet & P&L of AB Ltd. as on 31 ‐ 3 ‐ 2022.   Summarized Profit and Loss Account is as under for the year ending on 31 ‐ 3 ‐ '04:                                                                                      Rs. Sales (25% Cash sales)                                              80,00,000 Less: Cost of goods sold                                            56,00,000        Gross Profit                                                                24,00,000        Net profit (Before interest and tax 50%)                     9,00,000 Calculate the following ratios:
    A 21.25% Correct Answer Incorrect Answer
    B 18.46% Correct Answer Incorrect Answer
    C 19.83% Correct Answer Incorrect Answer
    D 16.35% Correct Answer Incorrect Answer
    E 17.46% Correct Answer Incorrect Answer

    Solution

    Rate of Return on Shareholders Fund =   PAT / SHF X 100 =     4,12,500 / 20,80,000 X 100 = 19.83% SHF = Eq. Sh. Cap. + Pref. Sh. Cap. + Reserves & Surplus – Fictitious Assets SHF = 10,00,000 + 4,00,000 + 7,00,000 ‐ 20,000 = 20,80,000

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