If equity means only ESC & Reserves, then capital employed doesn't include preference share capital sir... please reply sir πππππ
Kavitha Krishnan
CA Inter
β 665
21-Feb-24 18:09
199
Answers (3)
It includes Preference share capital.
Here the term equity means The shareholders equity heading in balance sheet
Naga Koushick Juturu
CA Final
β 885
21-Feb-24 18:53
Equity = equity share capital+reserves and surplus+preference share capital.
Capital employed= equity+long term debts.
Harish Kumar
CA Inter
β 180
21-Feb-24 19:15
In this picture Equity means ESC+PSC+R&S
But
In general as per ratio analysis chapter Equity means ESC+R&S
Capital Employed means ESC+PSC+R&S and Long term Debt