Question 26 Chapter 4 of +2-B
Table of Contents
II. Solvency (Long-Term) Ratio
26. (Debt Equity Ratio) From the following Balance Sheet of XY Limited calculate Debt Equity Ratio
| Balance Sheet of XY Limited | |
| As at 31st March 2018 | |
| Particular | ₹ |
| I. Equity and Liabilities | |
| 1. Shareholders’ Funds | |
| Equity Share Capital | 7,00,000 |
| Reserves and Surplus | 2,00,000 |
| 2. Non-Current Liabilities | |
| Long-term Borrowing : | |
| 10% Debentures | 6,00,000 |
| 3. Current Liabilities | |
| Trade Payable | 90,000 |
| Short term Provision | 20,000 |
| Total | 16,10,000 |
| II. Assets : | |
| 1. Non-Current Assets | |
| Fixed Assets | |
| Tangible Assets | 10,00,000 |
| Intangible Assets | 3,00,000 |
| Other Non current Assets | |
| Unamortised Loss on issue of debenture | 50,000 |
| 2. Current Assets | |
| Inventory | 2,50,000 |
| Other Current Assets | |
| Prepaid Expenses | 10,000 |
| Total | 16,10,000 |
The solution of Question 26 Chapter 4 of +2-B: –
| Debt Equity Ratio | = | Debt |
| Shareholders Funds |
| Debt | = | 10% Debentures |
| = | ₹ 6,00,000 | |
| Shareholders Funds | = | Share Capital + Reserves |
| = | ₹ 7,00,000 + ₹ 2,00,000 | |
| = | ₹ 9,00,000 |
| Debt Equity Ratio | = | ₹ 6,00,000 |
| ₹ 9,00,000 | ||
| = | 2: 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
- 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
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