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

Q-97- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

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 Capital 3,20,000 Subscribed and Paid up Reserves and Surplus Surplus in Statement of Profit and Loss Account 48,000 Reserves 1,00,000 Non-Current Liabilities Long-term Borrowings 9% Debentures 1,20,000 Current Liabilities Trade Payable 3,04,000 8,92,000 II. Assets Non-Current Assets Tangible Assets Building 3,00,000 Machinery 60,000 Current Assets Inventory 1,76,000 Trade Receivable 3,28,000 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 = 0.52: 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 = ₹ 1,20,000 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 II – Solution

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