# Question 102 Chapter 4 of +2-B – USHA Publication 12 Class Q-102- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 102 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

102 (Debt Equity Ratio/Current Ratio) From the following information calculate the (i) Debt equity Ratio and (ii) the current Ratio.

 Share capital ₹ 1,50,000 Trade Payable ₹ 60,000 Debentures ₹ 2,75,000 Bank Balance ₹ 45,000 Long term Loan ₹ 1,00,000 General Reserve ₹ 20,000 Trade Receivable ₹ 95,000 Output IGST ₹ 10,000

## The solution of Question 102 Chapter 4 of +2-B: –

 (i) Debt Equity Ratio = Debt Equity = = ₹ 3,75,000 ₹ 1,70,000 = 2.2 : 1
 (ii) Current Ratio = Current Assets Current Liabilities = = ₹ 1,40,000 ₹ 70,000 = 2 : 1

Working Notes

 Debt = Debentures + Long term Loan = ₹ 2,75,000 + ₹ 1,00,000 = ₹ 3,75,000 Current Assets = Bank + Trade Receivable = ₹ 45,000 + ₹ 95,000 = ₹ 1,40,000 Current Liabilities = Creditors + Output IGST = ₹ 60,000 + ₹ 10,000 = ₹ 70,000

Also, Check out the solved question of previous Chapters: –