# Question 56 Chapter 4 of +2-B – T.S. Grewal 12 Class Question No. 56- Chapter No.4 - T.S. Grewal +2 Book Part 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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