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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Calculate the Debt to Capital Employed Ratio from the following information: Total Debts ₹60,00,000; Current Assets ₹25,00,000; Non-Current Assets ₹95,00,000; Working Capital ₹5,00,000.
Total Assets = Non-Current Assets + Current Assets = 95,00,000 + 25,00,000 = ₹1,20,00,000
Total Liabilities = Total Assets = ₹1,20,00,000
Equity = Total Liabilities − Total Debts = 1,20,00,000 − 60,00,000 = ₹60,00,000
Current Liabilities = Current Assets − Working Capital = 25,00,000 − 5,00,000 = ₹20,00,000
Debt (Non-Current Liabilities) = Total Debt − Current Liabilities = 60,00,000 − 20,00,000 = ₹40,00,000
Capital Employed = Debt + Equity = 40,00,000 + 60,00,000 = ₹1,00,00,000
Debt to Capital Employed Ratio = 40,00,000 ÷ 1,00,00,000 = 0.4:1
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.75 - 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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