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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Calculate the Debt to Equity Ratio: Equity Share Capital ₹5,00,000; General Reserve ₹90,000; Accumulated Profits ₹50,000; 10% Debentures ₹1,30,000; Current Liabilities ₹1,00,000.
Equity = Equity Share Capital + General Reserve + Accumulated Profits = 5,00,000 + 90,000 + 50,000 = ₹6,40,000
Debt = 10% Debentures = ₹1,30,000 (Current Liabilities are excluded, as Debt to Equity Ratio considers only long-term debt)
Debt to Equity Ratio = Debt ÷ Equity = 1,30,000 ÷ 6,40,000 = 0.203:1
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 "T.S. Grewal Class 12 Vol 3 Chapter 4 Q.38 - Accounting Ratios", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Accounting Ratios.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Vol 3 Chapter 4 Q.38 - Accounting Ratios" instantly.