
Question 54 Chapter 4 of +2-B
Proprietary Ratio
54. From the following information, calculate proprietary Ratio:
| Particulars | Rs. |
| Equity Share Capital | 3,00,000 |
| Preference Share Capital | 1,50,000 |
| Reserves and Surplus | 75,000 |
| Debentures | 1,80,000 |
| Trade Payables | 45,000 |
| 7,50,000 | |
| Fixed Assets | 3,75,000 |
| Short-term Investments | 2,25,000 |
| Other Current Assets | 1,50,000 |
| 7,50,000 |
| Shareholders’ Funds | = | Equity Share Capital + Preference Share Capital + Reserves and Surplus |
| = | Rs.3,00,000 + Rs.1,50,000 + Rs.75,000 | |
| Shareholders’ Funds | = | Rs. 5,25,000 |
| Total Assets | = | Fixed Assets + Current Assets + Short-term Investments |
| = | Rs.3,75,000 + Rs.1,50,000 + Rs.2,25,000 | |
| Total Assets | = | Rs. 7,50,000 |
| Total Assets to Debt Ratio | = | Total Assets | = | Rs.5,25,000 |
| Total Assets | Rs.7,50,000 | |||
| = | 0.7: 1 |
| Total Assets to Debt Ratio | = | Total Assets | X 100 |
| Total Assets |
| Total Assets to Debt Ratio | = | Rs. 5,25,000 | X 100 |
| Rs. 7,50,000 | |||
| = | 70% |
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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.
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