Question 26 Chapter 4 of +2-B – USHA Publication 12 Class

Question 26 Chapter 4 of +2-B

Question 26 Chapter 4 of +2-B

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

  • Chapter No. 3 – Partnership Accounts – II (Introduction)

  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

  • 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 (Balance Sheet Only)

  • Chapter No. 2 – Techniques of Financial Statement Analysis

  • Chapter No. 3 – Ratio Analysis 

  • Chapter No. 4 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 26 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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