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 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
  = 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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