Shareholders’ Funds ₹1,60,000; Total Debts ₹3,60,000; Current Liabilities ₹40,000. Calculate the Total Assets to Debt Ratio.
Total Assets = Total Debts + Shareholders’ Funds = 3,60,000 + 1,60,000 = ₹5,20,000
Long-term Debts = Total Debt − Current Liabilities = 3,60,000 − 40,000 = ₹3,20,000
Total Assets to Debt Ratio = 5,20,000 ÷ 3,20,000 = 13:8, or 1.625:1
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.53 - 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.
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