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

Question 39 Chapter 4 of +2-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: –

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)

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 39 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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