Question 23 Chapter 4 of +2-B

Question 23 Chapter 4 of +2-B

II. Solvency (Long-Term) Ratio

23. (Debt Equity Ratio) From the following calculate the Debt equity ratio.

Equity share capital1,00,000
General Reserve55,000
10% Debenture50,000
Current Liabilities50,000
Preliminary Expenses5,000

The solution of Question 23 Chapter 4 of +2-B: – 

Debt Equity Ratio=Debt
Shareholders Funds
Debt=10% Dentures
Shareholders Funds=Equity share capital + General Reserve – Preliminary Expenses
 =₹ 1,00,000 + ₹ 55,000 – ₹ 5,000
 =₹ 1,50,000
Debt Equity Ratio=₹ 50,000
₹ 1,50,000
 =1 : 3

What are Liquidity Ratios – Formulas and Examples

Comment if you have any question.

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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

2 Book 3 min 225x300 - Question 23 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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