Question 35 Chapter 4 of +2-B - T.S. Grewal 12 Class

 

Question 35 Chapter 4 of +2-B

35. From the following information, Calculate Debt to Equity Ratio:

	Rs.
10,000% Preference Share Capital	1,00,000
5,000; 9% Preference Shares of Rs. 10 each fully paid	50,000
General Reserve	45,000
Surplus, i.e., Balance in Statement of profit and loss	20,000
10% Debentures	75,000
Current Liabilities	50,000

 

The solution of Question 35 Chapter 4 of +2-B: -

Shareholder's Funds	=	Equity Share Capital + Preference Share Capital + General Reserve + Surplus
	=	Rs.1,00,000 + Rs.50,000 + Rs.45,000 + Rs.20,000
Shareholder's Funds	=	Rs. 2,15,000
Long-term Debts	=	Debentures
Long-term Debts	=	Rs. 75,000

 

 

Debt to Equity Ratio	=	Long-term Debts	=	Rs 75,000
		Shareholder's Funds		Rs.2,15,000
	=	0.35: 1

 

 

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication