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MEANING OF CAPITAL EMPLOYED

This query is : Resolved 
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(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
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CA Shiv

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CA Shiv (Expert)
04 June 2010 Because debenture holders are treated as Preferential Creditors. They are our liability..
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