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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

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Question 40 Chapter 4 of +2-B

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Debt to Equity Ratio

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

 Rs. Rs.
Fixed Assets (Gross) 8,40,000Current Assets3,50,000
Accumulated Depreciation1,40,000Current Liabilities2,80,000
Non-current Investments14,00010% Long-term borrowings 4,20,000
Long-term loans and Advances56,000Long-term Provision1,40,000

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 RatioDebts=Rs.5,60,000
EquityRs.2,80,000
 =2: 1  

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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)

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

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

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