Question 32 Chapter 4 of +2-B

Question 32 Chapter 4 of +2-B

II. Solvency (Long-Term) Ratio

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 capital3,00,000
Reserve and Surplus1,00,000
2. Non-Current Liabilities 
Long term Borrowings 10% Debentures2,00,000
3. Current Liabilities 
Trade Payable50,000
Total6,50,000
II. Assets 
1. Non-Current Assets 
Fixed Assets4,00,000
Intangible Assets50,000
Deferred tax Assets (Net) 
Other Non-current Assets 
Unamortised Loss on Issue of Debt60,000
II. Current Assets 
Other Current Assets1,00,000
Unamortised Loss on Issue of debentures40,000
Total6,50,000

 

The solution of Question 32 Chapter 4 of +2-B: – 

Calculation of Shareholders’ Funds
Particulars
DebitCredit
(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

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

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