# Question 24 Chapter 4 of +2-B – USHA Publication 12 Class Q-24- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 24 Chapter 4 of +2-B

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

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