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Question 97 Chapter 4 of +2-B
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Table of Contents
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: –
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| (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 I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
