Question 43 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 43 Chapter 4 of +2-B

Question 43 Chapter 4 of +2-B

43. From the following Balance Sheet of ABC Ltd. As at 31st March 2019, calculate Debt to Equity Ratio:

Particulars Amount Rs.
I. Equity and Liabilities   
1. Shareholders’ Funds  
(a) Share Capital  
(i) Equity Share Capital5,00,000 
(ii) 10% Preference Share Capital5,00,00010,00,000
(b) Reserves and Surplus 2,40,000
2. Non-Current Liabilities  
(a) Long-term borrowings (Debentures) 2,50,000
3. Current Liabilities  
(a) Trade Payables 4,30,000
(b) Other current Liabilities 20,000
(c) Short-term Provision 3,00,000
Total 22,40,000
II. Assets  
1.Non-Current Assets  
(a) Fixed Assets:  
(i) Tangible Assets 6,40,000
(ii) Intangible Assets 1,00,000
2. Current Assets   
(a)Inventories 7,50,000
(b) Trade receivable 6,40,000
(c) Cash and Cash equivalents 1,10,000
Total 22,40,000

 

The solution of Question 43 Chapter 4 of +2-B: –

Equity=Equity Share Capital + 10% Preference Share Capital + Reserves and Surplus
 =Rs. 5,00,000 + Rs. 5,00,000 + Rs. 2,40,000
Equity=Rs. 12,40,000
Debt=Long-Term Borrowings(Debentures)
Debt=Rs. 2,50,000



Debt to Equity RatioDebts=Rs. 2,50,000
EquityRs.12,40,000
 =0.2: 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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