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Question 23 Chapter 14 of Class 12 Part – 2 – 2024
II. Solvency (Long-Term) Ratio
23. (Debt Equity Ratio) From the following calculate the Debt equity ratio.
| ₹ | |
| Equity share capital | 1,00,000 |
| General Reserve | 55,000 |
| 10% Debenture | 50,000 |
| Current Liabilities | 50,000 |
| Preliminary Expenses | 5,000 |
| Debt Equity Ratio | = | Debt |
| Shareholders Funds |
| Debt | = | 10% Dentures |
| = | 50,000 | |
| Shareholders Funds | = | Equity share capital + General Reserve - Preliminary Expenses |
| = | ₹ 1,00,000 + ₹ 55,000 - ₹ 5,000 | |
| = | ₹ 1,50,000 |
| Debt Equity Ratio | = | ₹ 50,000 |
| ₹ 1,50,000 | ||
| = | 1 : 3 |
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.
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