Question 32 Chapter 4 of +2-B
Table of Contents
32. (Shareholders’ Funds with both approaches) From the following Balance Sheet of Rani Limited calculate the Shareholders funds and Debt Equity Ratio by following liabilities Approach and Assets Approach.
| Balance Sheet of Rani Ltd. | |
| As of 31st March 2018 | |
| Particulars | ₹ |
| I. Equity and Liabilities | |
| 1. Shareholders’ Funds | |
| Share capital | 3,00,000 |
| Reserve and Surplus | 1,00,000 |
| 2. Non-Current Liabilities | |
| Long term Borrowings 10% Debentures | 2,00,000 |
| 3. Current Liabilities | |
| Trade Payable | 50,000 |
| Total | 6,50,000 |
| II. Assets | |
| 1. Non-Current Assets | |
| Fixed Assets | 4,00,000 |
| Intangible Assets | 50,000 |
| Deferred tax Assets (Net) | |
| Other Non-current Assets | |
| Unamortised Loss on Issue of Debt | 60,000 |
| II. Current Assets | |
| Other Current Assets | 1,00,000 |
| Unamortised Loss on Issue of debentures | 40,000 |
| Total | 6,50,000 |
The solution of Question 32 Chapter 4 of +2-B: –
| Calculation of Shareholders’ Funds | ||
| Particulars |
Debit | Credit |
| (i) Liability side approach | ||
| Share Capital | ₹ 3,00,000 | |
| Reserves & Surplus | ₹ 1,00,000 | |
| ₹ 4,00,000 | ||
| Less : | ||
| Unamortised Loss on Issue of Debt | ₹ 60,000 | |
| Discount on Debentures | ₹ 40,000 | ₹ 1,00,000 |
| Shareholders Fund | ₹ 3,00,000 | |
| (ii) Asset side approach | ||
| Fixed Assets | ₹ 4,00,000 | |
| Intangible Assets | ₹ 50,000 | |
| Intangible Assets | ₹ 1,00,000 | |
| ₹ 5,50,000 | ||
| Less : | ||
| Trade Payable | ₹ 2,00,000 | |
| 10% Debentures | ₹ 50,000 | ₹ 2,50,000 |
| Shareholders Fund | ₹ 3,00,000 | |
What are Liquidity Ratios – Formulas and Examples
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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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
