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Capital employed

riya r (student) (35 Points)

24 May 2016

Hi can anyone tell me What is the difference b/w Actual capital and capital employed

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DURAI (M.Com MBA CA Final Student) (47 Points)
Replied 24 May 2016

Actual Capital = Capital Invested

whereas

Capital Employed = Net Assets + Shareholders funds

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(Guest)

Capital employed =Shareholder fund+Long term debt-Non trading investment. *Share holder fund/Equity/Net worh=Equity capital +Reserve surplus-Misc exp+Preference share capital. Or Capital employed =Net Fixed assets+Trading investment +Net working capital.

chandan prasad (accountant) (21 Points)
Replied 24 May 2016

Actual capital means share capital (equity+pref)+security premium
but capital Employed means total assets -non trading investment- misc. expenses not written off- all liabilities (short+long)+ proposed dividend(equity+pref)