Question 24 Chapter 4 of +2-B
Table of Contents
II. Solvency (Long-Term) Ratio
24. (Debt Equity Ratio) From the following, calculate the Debt equity ratio.
Equity Share Capital ₹ 1,50,000, Preference Share Capital ₹ 50,000, General Reserve ₹ 1,00,000, Accumulated Profits ₹ 60,000, Debentures ₹ 1,50,000, Trade payable ₹ 80,000, Expenses Payable ₹ 20,000, Preliminary Expenses not yet written off ₹ 10,000.
The solution of Question 24 Chapter 4 of +2-B: –
Debt Equity Ratio | = | Debt |
Shareholders Funds |
Debt | = | Dentures |
= | ₹ 1,50,000 | |
Shareholders Funds | = | Equity Share Capital + Preference Share Capital + General Reserve + Accumulated Profits – Preliminary Expenses |
= | ₹ 1,50,000 + ₹ 50,000 + ₹ 1,00,000 + ₹ 60,000 – ₹ 10,000 | |
= | ₹ 3,50,000 |
Debt Equity Ratio | = | ₹ 1,50,000 |
₹ 3,50,000 | ||
= | 3 : 7 |
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
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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