Question 29 Chapter 4 of +2-B

Question 29 Chapter 4 of +2-B

II. Solvency (Long-Term) Ratio

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

ParticularParticular
40,000 shares of ₹ 10 each4,00,000Sundry Creditors40,000
General Reserve20,000Outstanding expenses10,000
Accumulated profit30,000Loan from Bank75,000
Debentures75,000  

 

The solution of Question 29 Chapter 4 of +2-B: – 

Debt Equity Ratio=Debt
Shareholders Funds
Debt=Debentures + Loan from Bank
 =₹ 75,000 + ₹ 75,000
 =₹ 1,50,000
Shareholders Funds=Share capital + General Reserve + Accumulated Profit
 =₹ 4,00,000 + ₹ 20,000 + ₹ 30,000
 =₹ 4,50,000
Debt Equity Ratio=₹ 1,50,000
₹ 4,50,000
   
 =0.33: 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

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

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