Question 56 Chapter 4 of +2-B
Table of Contents
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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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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
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