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Question 33 Chapter 4 of +2-B
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Table of Contents
33. (Debt Equity Ratio/Proprietary Ratio/Total Asset to Debt Ratio) Calculate
- Debt Equity Ratio
- Proprietary Ratio
- Total Assets to Debt Ratio
From the following information
| 12% Debentures | 5,00,000 |
| Loan from HDFC | 2,50,000 |
| Trade Payable | 3,50,000 |
| Equity share Capital | 12,50,000 |
| Reserve | 2,50,000 |
| Surplus i.e. Balance in Statement of Profit and Loss | 1,50,000 |
| Goodwill | 2,50,000 |
| Other fixed Assets | 17,50,000 |
| Current Assets | 7,50,000 |
The solution of Question 33 Chapter 4 of +2-B: –
| (i) Debt Equity Ratio | = | Total Long term Debt |
| Shareholder’s Fund |
| Total Long term Debt | = | 12% Debentures + Loan from HDFC |
| = | ₹ 5,00,000 + ₹ 2,50,000 | |
| = | ₹ 7,50,000 | |
| Shareholder’s Fund | = | Equity share Capital + Reserve + Surplus i.e. Balance in Statement of Profit and Loss |
| = | ₹ 12,50,000 + ₹ 2,50,000 + ₹ 1,50,000 | |
| = | ₹ 16,50,000 |
| Debt Equity Ratio | = | ₹ 7,50,000 |
| ₹ 16,50,000 | ||
| = | 0.45: 1 |
| (ii) Proprietary Ratio | = | Proprietor’s Funds |
| Total Assets |
| Proprietor’s Funds | = | Equity share Capital + Reserve + Surplus i.e. Balance in Statement of Profit and Loss |
| = | ₹ 12,50,000 + ₹ 2,50,000 + ₹ 1,50,000 | |
| = | ₹ 16,50,000 | |
| Shareholder’s Fund | = | Fixed Assets + current Assets |
| = | ₹ 17,50,000 + ₹ 7,50,000 | |
| = | ₹ 25,00,000 |
| Debt Equity Ratio | = | ₹ 16,50,000 |
| ₹ 25,00,000 | ||
| = | 0.66 : 1 |
| (iii) Total Assets to Debt Ratio | = | Total Assets |
| Long term Debt |
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| Total Assets | = | Other Fixed Assets + Current Assets + Goodwill |
| = | ₹ 17,50,000 + ₹ 7,50,000 + ₹ 2,50,000 | |
| = | ₹ 27,50,000 | |
| Long term Debt | = | 12% Debentures + Loan from HDFC |
| = | ₹ 5,00,000 + ₹ 2,50,000 | |
| = | ₹ 7,50,000 |
| (iii) Total Assets to Debt Ratio | = | ₹ 27,50,000 |
| ₹ 7,50,000 | ||
| = | 3.66: 1 |
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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
