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Property, Plant and Equipment of a company increased from ₹ 10,00,000 to ₹ 12,50,000. The percentage change is ______.

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Question

Property, Plant and Equipment of a company increased from ₹ 10,00,000 to ₹ 12,50,000. The percentage change is ______.

Options

  • 20%

  • 25%

  • `33 1/3`%

  • 40%.

MCQ
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Solution

Property, Plant and Equipment of a company increased from ₹ 10,00,000 to ₹ 12,50,000. The percentage change is 25%.

Explanation:

Initial Value: ₹ 10,00,000

Final Value: ₹ 12,50,000

Absolute Change: ₹ 12,50,000 – ₹ 10,00,000 = ₹ 2,50,000

Using the percentage change formula:

$$\text{Percentage Change} = \frac{\text{Absolute Change}}{\text{Initial Value}} \times 100$$

$$\text{Percentage Change} = \frac{2,50,000}{10,00,000} \times 100 = \mathbf{25\%}$$

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Chapter 3: Tools of Financial Statement Analysis-Comparative Statements and Common-Size Statements - TEST YOUR KNOWLEDGE [Page 3.47]

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TS Grewal Accountancy Analysis of Financial Statements [English] Class 12
Chapter 3 Tools of Financial Statement Analysis-Comparative Statements and Common-Size Statements
TEST YOUR KNOWLEDGE | Q 7. | Page 3.47
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