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 capital2,00,000
Equity share capital4,00,000
Capital Reserve1,00,000
Statement of Profit & Loss1,00,000
14% Debenture2,00,000
Unsecured loans1,00,000
Creditors40,000
Bills payable20,000
Provision for taxation10,000
Output IGST 5,000
Output CGST7,500
Output SGST7,500

 

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

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

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close