Question 97 Chapter 4 of +2-B – USHA Publication 12 Class

Question 97 Chapter 4 of +2-B

Question 97 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

97. (Proprietary Ratio/Debt Equity Ratio)

BALANCE SHEET OF BHARAT RUBBER LTD. AS ON 31ST MARCH, 2018 
Particulars  
I. Equity and Liabilities 
Shareholders’ Funds 
Equity Share Capital3,20,000
Subscribed and Paid up  
Reserves and Surplus  
Surplus in Statement of Profit and Loss Account48,000
Reserves1,00,000
Non-Current Liabilities 
 Long-term Borrowings 
9% Debentures1,20,000
Current Liabilities 
Trade Payable3,04,000
 8,92,000
II. Assets  
Non-Current Assets 
Tangible Assets 
Building 3,00,000
Machinery 60,000
Current Assets 
Inventory 1,76,000
Trade Receivable3,28,000
Bank 28,000
 8,92,000

From the balance sheet given above, calculate the following ratios :
(i) Proprietary ratio (ii) Debt equity ratio

The solution of Question 97 Chapter 4 of +2-B: – 

 

(a) Proprietary Ratio=Proprietor’s funds
Total Assets
 = 
 =₹ 4,68,000
 ₹ 8,92,000
 =1.67: 1
(b) Debt Equity Ratio=Debt
Equity
 = 
 =₹ 1,20,000
 ₹ 4,68,000
 =0.26 : 1

 

Proprietor’s funds=Equity Share Capital + Surplus + Reserve
 =₹ 3,20,000 + ₹ 48,000 + ₹ 1,00,000
 =₹ 4,68,000
Debt=₹ 1,22,000
Equity=Equity Share Capital + Surplus + Reserve
 =₹ 3,20,000 + ₹ 48,000 + ₹ 1,00,000
 =₹ 4,68,000


Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 97 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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