Question 29 Chapter 4 of +2-B
Table of Contents
II. Solvency (Long-Term) Ratio
29. (Debt Equity Ratio) From the following calculate the Debt equity ratio.
| Particular | ₹ | Particular | ₹ |
| 40,000 shares of ₹ 10 each | 4,00,000 | Sundry Creditors | 40,000 |
| General Reserve | 20,000 | Outstanding expenses | 10,000 |
| Accumulated profit | 30,000 | Loan from Bank | 75,000 |
| Debentures | 75,000 |
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: 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 (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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