Question 40 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 40 Chapter 4 of +2-B
Question No. 40- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 40 Chapter 4 of +2-B

Debt to Equity Ratio

40. Calculate Debt to Equity Ratio from the following information:

  Rs.   Rs.
Fixed Assets (Gross)  8,40,000 Current Assets 3,50,000
Accumulated Depreciation 1,40,000 Current Liabilities 2,80,000
Non-current Investments 14,000 10% Long-term borrowings  4,20,000
Long-term loans and Advances 56,000 Long-term Provision 1,40,000

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

The solution of Question 40 Chapter 4 of +2-B: –

Equity = Total Assets – Total Debts
  = (8,40,000 – 1,40,000) + 14,000 + 56,000 + 3,50,000 – (4,20,000 + 1,40,000 + 2,80,000)
Equity = Rs. 2,80,000
Debt = Long-Term Borrowings + Long-Term Provisions
  = Rs. 4,20,000 + Rs. 1,40,000
Debt = Rs. 5,60,000



Debt to Equity Ratio Debts = Rs.5,60,000
Equity Rs.2,80,000
  = 2: 1    

 

Balance Sheet: Meaning, Format & Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

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)

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

Advertisement-X

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

Advertisement

error: Content is protected !!