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Question 24 Chapter 4 of +2-B
II. Solvency (Long-Term) Ratio
24. (Debt Equity Ratio) From the following, calculate the Debt equity ratio.
Equity Share Capital ₹ 1,50,000, Preference Share Capital ₹ 50,000, General Reserve ₹ 1,00,000, Accumulated Profits ₹ 60,000, Debentures ₹ 1,50,000, Trade payable ₹ 80,000, Expenses Payable ₹ 20,000, Preliminary Expenses not yet written off ₹ 10,000.
| Debt Equity Ratio | = | Debt |
| Shareholders Funds |
| Debt | = | Dentures |
| = | ₹ 1,50,000 | |
| Shareholders Funds | = | Equity Share Capital + Preference Share Capital + General Reserve + Accumulated Profits - Preliminary Expenses |
| = | ₹ 1,50,000 + ₹ 50,000 + ₹ 1,00,000 + ₹ 60,000 - ₹ 10,000 | |
| = | ₹ 3,50,000 |
| Debt Equity Ratio | = | ₹ 1,50,000 |
| ₹ 3,50,000 | ||
| = | 3 : 7 |
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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 24 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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