Table of Contents
Question 35 Chapter 4 of +2-B
35. From the following information, Calculate Debt to Equity Ratio:
| Rs. | |
| 10,000% Preference Share Capital | 1,00,000 |
| 5,000; 9% Preference Shares of Rs. 10 each fully paid | 50,000 |
| General Reserve | 45,000 |
| Surplus, i.e., Balance in Statement of profit and loss | 20,000 |
| 10% Debentures | 75,000 |
| Current Liabilities | 50,000 |
The solution of Question 35 Chapter 4 of +2-B: –
| Shareholder’s Funds | = | Equity Share Capital + Preference Share Capital + General Reserve + Surplus |
| = | Rs.1,00,000 + Rs.50,000 + Rs.45,000 + Rs.20,000 | |
| Shareholder’s Funds | = | Rs. 2,15,000 |
| Long-term Debts | = | Debentures |
| Long-term Debts | = | Rs. 75,000 |
| Debt to Equity Ratio | = | Long-term Debts | = | Rs 75,000 |
| Shareholder’s Funds | Rs.2,15,000 | |||
| = | 0.35: 1 |
Balance Sheet: Meaning, Format & Examples
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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