MEANING OF CAPITAL EMPLOYED
This query is : Resolved
CA Abhishek Singh
(Querist)
04 June 2010
HELLO EVERYONE,
DOES CAPITAL EMPLOYED AND NET ASSETS MEAN SAME.
IN FM CAPITAL EMPLOYED=ESC+PSC+R&S+LOAN FUNDS.
BUT IN ONE OF THE A/C'S PROBLEM THE CALCULATION CAPITAL EMPLOYED AS FOLLOWS.
(FA+CA-CREDITORS-DEBENTURES)
I DON'T KNOW WHY THEY DEDUCTED THE DEBENTURS??
PLEASE EXPLAIN???
abhipcc@rediffmail.com
DOES CAPITAL EMPLOYED AND NET ASSETS MEAN SAME.
IN FM CAPITAL EMPLOYED=ESC+PSC+R&S+LOAN FUNDS.
BUT IN ONE OF THE A/C'S PROBLEM THE CALCULATION CAPITAL EMPLOYED AS FOLLOWS.
(FA+CA-CREDITORS-DEBENTURES)
I DON'T KNOW WHY THEY DEDUCTED THE DEBENTURS??
PLEASE EXPLAIN???
abhipcc@rediffmail.com
04 June 2010
Because debenture holders are treated as Preferential Creditors. They are our liability..
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