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Question 102 Chapter 4 of +2-B
Miscellaneous (Analytical Questions)
102 (Debt Equity Ratio/Current Ratio) From the following information calculate the (i) Debt equity Ratio and (ii) the current Ratio.
| Share capital | ₹ 1,50,000 |
| Trade Payable | ₹ 60,000 |
| Debentures | ₹ 2,75,000 |
| Bank Balance | ₹ 45,000 |
| Long term Loan | ₹ 1,00,000 |
| General Reserve | ₹ 20,000 |
| Trade Receivable | ₹ 95,000 |
| Output IGST | ₹ 10,000 |
| (i) Debt Equity Ratio | = | Debt |
| Equity | ||
| = | ||
| = | ₹ 3,75,000 | |
| ₹ 1,70,000 | ||
| = | 2.2 : 1 |
| (ii) Current Ratio | = | Current Assets |
| Current Liabilities | ||
| = | ||
| = | ₹ 1,40,000 | |
| ₹ 70,000 | ||
| = | 2 : 1 |
Working Notes
| Debt | = | Debentures + Long term Loan |
| = | ₹ 2,75,000 + ₹ 1,00,000 | |
| = | ₹ 3,75,000 | |
| Current Assets | = | Bank + Trade Receivable |
| = | ₹ 45,000 + ₹ 95,000 | |
| = | ₹ 1,40,000 | |
| Current Liabilities | = | Creditors + Output IGST |
| = | ₹ 60,000 + ₹ 10,000 | |
| = | ₹ 70,000 |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 102 Chapter 4 of +2-B - USHA Publication 12 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication Part 2 volume I.
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