Question 37 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 37 Chapter 4 of +2-B

Question 37 Chapter 4 of +2-B

37. Total Assets Rs. 12,50,000; Total Debts Rs. 10,00,000; Current Liabilities Rs. 5,00,000. Calculate Debt to Equity Ratio.

The solution of Question 37 Chapter 4 of +2-B: –

Total Assets = Rs. 12,50,000
Total Debts = Rs. 10,00,000
Equity = Total Assets –  Total Liabilities
  = Rs.12,50,000 –  Rs.10,00,000
Equity = Rs.2,50,000
Long-term Debts = Total Debts –  Current Liabilities
  = Rs.10,00,000 –  Rs.5,00,000
Long-term Debts = Rs. 5,00,000



Debt to Equity Ratio Long-term Debts = Rs.5,00,000
Equity Rs.2,50,000
  = 2: 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)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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T.S. Grewal’s Analysis of Financial Statements

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