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 Capital 5,00,000  
(ii) 10% Preference Share Capital 5,00,000 10,00,000
(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 Ratio Debts = Rs. 2,50,000
Equity Rs.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)

  • 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 43 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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