| (i) | A's capital = 2,00,000; B's capital 3,00,000; Goodwill 50,000 (given in Balance sheet). Capital employed will be | (a) | 5,00,000 |
| (ii) | Total assets = 10,00,000; Total assets includes miscellaneous expenditure 1,00,000; Outside liabilities = 4,00,000. Capital employed will be | (b) | 5,50,000 |
| (iii) | Normal profit = 48,000; Normal rate of return = 8% p.a. Capital employed will be: | (c) | 4,50,000 |
| (iv) | A's capital = 2,50,000; B's capital 3,00,000; Trade investment = 50,000. Capital employed will be: | (d) | 6,00,000 |
A) (i)-c; (ii)-a; (iii)-d; (iv)-b
B) (i)-b; (ii)-c; (iii)-d; (iv)-a
C) (i)-d; (ii)-a; (iii)-c; (iv)-b
D) (i)-c, (ii)-a, (iii)-b; (iv)-d
Correct Answer: A
Solution :
(i)-c; (ii)-a; (iii)-d; (iv)-b
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