Question 144 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 144 Chapter 4 of +2-B

Question 144 Chapter 4 of +2-B

Miscellaneous

144. From the following, calculate (a) Debt to Equity Ratio; (b) Total Assets to Debt Ratio; and (c) Proprietary Ratio:

  Rs   Rs
Equity Share Capital  75,000 Debentures 75,000
Preference Share Capital 25,000 Trade Payable 40,000
General Reserve 45,000 Outstanding Expenses 10,000
Balance in Statement of Profit and Loss  30,000    

 

The solution of Question 144 Chapter 4 of +2-B: –

I

Long-term Debts = Rs 75,000
Equity = Equity Share Capital + Preference Share Capital + General Reserve + Balance in Statement of Profit & Loss
  = Rs 75,000 + Rs 25,000 + Rs 45,000 + Rs 30,000
  = Rs 1,75,000
Debt – Equity Ratio = Long-term Debts
Equity
Gross Profit Ratio = Rs. 75,000
Rs 1,75,000
  = 0.43 : 1
     

 

II

Total Assets = Equity Share Capital + Preference Share Capital + General Reserve + Balance in Statement of Profit & Loss + Debentures + Trade Payables + Outstanding Expenses
  = Rs 75,000 + Rs 25,000 +Rs 45,000 + Rs 30,000 + Rs 75,000 + Rs 40,000 + Rs10,000
  = Rs 3,00,000
Long term Debts = Rs 75,000
Total Assets to Debts Ratio = Total Assets
Long term Debts
  = Rs. 3,00,000
Rs 75,000
  = 4 : 1

 

III

Shareholders’ Funds = Equity Share Capital + Preference Share Capital + General Reserve + Balance in Statement of Profit & Loss
  = 75,000+25,000+45,000+30,000
  = Rs 1,75,000
Total Assets = Equity Share Capital + Preference Share Capital + General Reserve +Balance in Statement of Profit & Loss + Debentures + Trade Payables + Outstanding Expenses
  = Rs 75,000 + Rs 25,000 + Rs 45,000 + Rs 30,000 + Rs 75,000 + Rs 40,000 + Rs 10,000
  = Rs 3,00,000
Proprietary Ratio = Shareholders’ Funds
Total Assets
  = Rs. 1,75,000
Rs 3,00,000
  = 0.58 : 1



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

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 144 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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