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Sir I need your help.
I was doing BPP section B questions when I confronted this problem(different Capital employed figures from same data).…Below is a summary of the financial statementa for the business:
Sales 2,540
Cost of sales 1,425
Expenses 600
Interest 11
Share Capital and reserves 2,400
Long-term loan 250
Non current assets 1,650
Receivables 347
Inventory 180
Payables 318
Bank balance 36Using Formula = Assets- current liability =
(1,650+347+180+36) – 318= 1,895Another way = equity + non current liability =
2,400 + 250 =2,650I got lucky for the first question until he picked the the different formula and I ended up lost.
Please I need to know why it is not giving same answer, I have MA exam tomorrow I need to use it?
Thank you so much.This is an error in the BPP Kit.
Both ‘equations’ will always give the same result – that fact that they do not here is the error.
In the exam it does not matter which you use (depending obviously on what information is available in the question).
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