Question 28 Chapter 4 of +2-B – USHA Publication 12 Class

Question 28 Chapter 4 of +2-B

II. Solvency (Long-Term) Ratio

28. (Effect of Transactions on DE Ratio) The Debt Equity Ratio of a company is 1 : 2. Which of the following suggestion would (i) increase, (ii) decrease and (iii) not change it.
(a) Issue of equity shares, (b) Cash received from debtors, (c) Redemption of Debenture for cash,(d) Purchased goods on credit, (e) Redemption of debentures by conversion into shares, (f) Issue of shares against the purchase of fixed assets, (g) Issue of debentures against the purchase of a fixed asset.

The solution of Question 28 Chapter 4 of +2-B: – 

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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