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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Calculate the Total Assets to Debt Ratio from the following information:
| Particulars | Amount (₹) |
|---|---|
| Equity Share Capital | 4,00,000 |
| Long-term Borrowings | 1,80,000 |
| Surplus, i.e., Balance in Statement of Profit and Loss | 1,00,000 |
| General Reserve | 70,000 |
| Current Liabilities | 30,000 |
| Long-term Provision | 1,20,000 |
Total Assets = Total Liabilities = Equity Share Capital + Long-term Borrowings + Surplus + General Reserve + Current Liabilities + Long-term Provisions
= 4,00,000 + 1,80,000 + 1,00,000 + 70,000 + 30,000 + 1,20,000 = ₹9,00,000
Debt = Long-term Borrowings + Long-term Provisions = 1,80,000 + 1,20,000 = ₹3,00,000
Total Assets to Debt Ratio = 9,00,000 ÷ 3,00,000 = 3:1
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.57 - 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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