Question 24 Chapter 4 of +2-B

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

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 24 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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