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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Total Debt ₹12,00,000; Shareholders’ Funds ₹2,00,000; Reserves and Surplus ₹50,000; Current Assets ₹5,00,000; Working Capital ₹1,00,000. Calculate the Total Assets to Debt Ratio.
Working Capital = Current Assets − Current Liabilities
1,00,000 = 5,00,000 − Current Liabilities
Current Liabilities = ₹4,00,000
Long-term Debt = Total Debt − Current Liabilities = 12,00,000 − 4,00,000 = ₹8,00,000
Total Assets = Shareholders’ Funds + Total Debt = 2,00,000 + 12,00,000 = ₹14,00,000
Total Assets to Debt Ratio = 14,00,000 ÷ 8,00,000 = 1.75:1
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.55 - 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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