Need help in internal reconstruction

calculation of market value of investment

Net profit after Tax 250000

capitalisation of net profit 250000*100/12 (ie.12%) =2083333 *15%=312500

and ultimatly in the balance sheet  the investment value i have written is 312500

this is the working i have ...do not depend understand or confirm from somewhere

because i do not understand the working note (capitalization part.)

I am sorry ...if this is not very helpful .

and in the journal entries section

the entry is

Capital reduction a/c   Dr11500 ---> (324000-312500)

     To Investments A/c            11500

the value of the investment has become less,therefore it is a loss and Cap Red A/c is Debited and investment account is creadited