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.
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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: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
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Chapter No. 1 – Accounting Not for Profit Organisations
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Chapter No. 2 – Partnership Accounts – I
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Chapter No. 3 – Partnership Accounts – II (Introduction)
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Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
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Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
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Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
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Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
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Chapter No. 8 – Company Accounts (Share Capital)
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Chapter No. 9 – Company Accounts (Issue of Debentures)
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Chapter No. 10 – Company Accounts (Redemption of Debentures
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
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Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
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Chapter No. 2 – Techniques of Financial Statement Analysis
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Chapter No. 3 – Ratio Analysis
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Chapter No. 4 – Cash Flow Statement
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