Question 27 Chapter 4 of +2-B – USHA Publication 12 Class

Question 27 Chapter 4 of +2-B

Question 27 Chapter 4 of +2-B

II. Solvency (Long-Term) Ratio

27. (Debt Equity Ratio) From the following calculate the Debt equity ratio.

 
Preference share capital 2,00,000
Equity share capital 4,00,000
Capital Reserve 1,00,000
Statement of Profit & Loss 1,00,000
14% Debenture 2,00,000
Unsecured loans 1,00,000
Creditors 40,000
Bills payable 20,000
Provision for taxation 10,000
Output IGST  5,000
Output CGST 7,500
Output SGST 7,500

 

The solution of Question 27 Chapter 4 of +2-B: – 

Debt Equity Ratio = Debt
Shareholders Funds
Debt = 10% Dentures + Unsecured loans
  = ₹ 2,00,000 + ₹ 1,00,000
  = ₹ 3,00,000
Shareholders Funds = Preference share capital + Equity share capital + capital Reserve + Surplus in Statement of Profit & Loss
  = ₹ 2,00,000 + ₹ 4,00,000 + ₹ 1,00,000 + ₹ 1,00,000
  = ₹ 8,00,000
Debt Equity Ratio = ₹ 3,00,000
₹ 8,00,000
     
  = 0.375: 1



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

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