Question 56 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 56 Chapter 4 of +2-B

Question 56 Chapter 4 of +2-B

Proprietary Ratio

56. From the following information, calculate Proprietary Ratio:

Balance Sheet of Fortune Ltd. As at 31st March 2019
Particulars Note No. Rs.
I. Equity and Liabilities     
1. Shareholders’ Funds    
(a) Share Capital   6,00,000
(b) Reserves and Surplus   1,50,000
2. Current Liabilities    
(a) Short-term Borrowings   1,00,000
(b) Other Current Liabilities    50,000
(c) Short-term Provisions (provision for Tax)   1,00,000
Total   10,00,000
II. Assets    
1. Non-Current Assets     
Fixed Assets (Tangible Assets)   5,00,000
2. Current Assets    
(a) Current Investments   1,50,000
(b) Inventories    1,00,000
(c) Trade Receivables    1,50,000
Total   10,00,000

 

The solution of Question 56 Chapter 4 of +2-B: –

Shareholders’ Funds = Share Capital + Reserves and Surplus
  = Rs. 6,00,000 + Rs. 1,50,000
Shareholders’ Funds = Rs. 7,50,000
Total Assets =  Non-Current Assets + Current Assets (Short-term Investments + Inventories + Trade Receivables + Cash and Cash Equivalents)
  = Rs. 5,00,000 + (Rs.1,50,000 + Rs.1,00,000 + Rs.1,50,000 + Rs.1,00,000)
Total Assets = Rs. 10,00,000



Total Assets to Debt Ratio Total Assets = Rs.7,50,000
Total Assets Rs.10,00,000
  = 0.75: 1    

 

Total Assets to Debt Ratio Total Assets X 100  
Total Assets  
Total Assets to Debt Ratio Rs. 7,50,000 X 100
Rs. 10,00,000
  = 75%  

 

 

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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