# Question 39 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question No. 39- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 39 Chapter 4 of +2-B

Debt to Equity Ratio

39. Balance Sheet had the following amounts as at 31st March 2019:

 Rs. Rs. 10% Preference Share Capital 5,00,000 Current Assets 12,00,000 Equity Share Capital 15,00,000 Current Liabilities 8,00,000 Securities Premium Reserve 1,00,000 Investments (in other companies) 2,00,000 Reserve and Surplus 4,00,000 Fixed Assets – Cost 60,00,000 Long-term Loan from IDBI @ 9% 30,00,000 Depreciation is written off 14,00,000

Calculate ratios indicating the Long-term and the Short-term financial position of the company.

### The solution of Question 39 Chapter 4 of +2-B: –

 Equity = 10% Preference Share Capital + Equity Share Capital + Reserves and Surplus = Rs.5,00,000 + Rs.15,00,000 + Rs.4,00,000 Equity = Rs. 24,00,000 Debt = loan from IDBI @ 9% Debt = Rs. 30,00,000

 Debt to Equity Ratio = Long-term Debts = Rs.30,00,000 Shareholder’s Funds Rs.24,00,000 = 1.5: 1

Current Ratio

 Current Assets = Rs.12,00,000 Current Liabilities = Rs.8,00,000

 Current Ratio = Current Assets = Rs.12,00,000 Current Liabilities Rs.8,00,000 = 6: 1

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of previous Chapters: –