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Hello Sir,
In the ROI And RI Sums i realised the solution takes opening net assets for the calculations. It takes the average sometimes (only when the question mentions)
At some places they calculate using closing net assets.
I usually end up subtracting the depreciation and take the closing.
But what is the explanation for opening and why.Please solve my query.
Thank you so much in advance.
It is more likely that the assets held at the start of the year were what generated the profits for the year.
(Assets bought at the end of the year will not have had time to generate any of the profit during the year 🙂 )
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