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VDO+ Tag:Question 33 Chapter 14 of Class 12 Part – 2 – 2024
33. (Debt Equity Ratio/Proprietary Ratio/Total Asset to Debt Ratio) Calculate
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Video Tag:- Debt Equity Ratio
- Proprietary Ratio
- Total Assets to Debt Ratio
From the following information
| 12% Debentures | 5,00,000 |
| Loan from HDFC | 2,50,000 |
| Trade Payable | 3,50,000 |
| Equity share Capital | 12,50,000 |
| Reserve | 2,50,000 |
| Surplus i.e. Balance in Statement of Profit and Loss | 1,50,000 |
| Goodwill | 2,50,000 |
| Other fixed Assets | 17,50,000 |
| Current Assets | 7,50,000 |
The solution of Question 33 Chapter 14 of Class 12 Part – 2 – 2024: –
| (i) Debt Equity Ratio | = | Total Long term Debt |
| Shareholder’s Fund |
| Total Long term Debt | = | 12% Debentures + Loan from HDFC |
| = | ₹ 5,00,000 + ₹ 2,50,000 | |
| = | ₹ 7,50,000 | |
| Shareholder’s Fund | = | Equity share Capital + Reserve + Surplus i.e. Balance in Statement of Profit and Loss |
| = | ₹ 12,50,000 + ₹ 2,50,000 + ₹ 1,50,000 | |
| = | ₹ 16,50,000 |
| Debt Equity Ratio | = | ₹ 7,50,000 |
| ₹ 16,50,000 | ||
| = | 0.45: 1 |
| (ii) Proprietary Ratio | = | Proprietor’s Funds |
| Total Assets |
| Proprietor’s Funds | = | Equity share Capital + Reserve + Surplus i.e. Balance in Statement of Profit and Loss |
| = | ₹ 12,50,000 + ₹ 2,50,000 + ₹ 1,50,000 | |
| = | ₹ 16,50,000 | |
| Shareholder’s Fund | = | Fixed Assets + current Assets |
| = | ₹ 17,50,000 + ₹ 7,50,000 | |
| = | ₹ 25,00,000 |
| Debt Equity Ratio | = | ₹ 16,50,000 |
| ₹ 25,00,000 | ||
| = | 0.66 : 1 |
| (iii) Total Assets to Debt Ratio | = | Total Assets |
| Long term Debt |
| Total Assets | = | Other Fixed Assets + Current Assets + Goodwill |
| = | ₹ 17,50,000 + ₹ 7,50,000 + ₹ 2,50,000 | |
| = | ₹ 27,50,000 | |
| Long term Debt | = | 12% Debentures + Loan from HDFC |
| = | ₹ 5,00,000 + ₹ 2,50,000 | |
| = | ₹ 7,50,000 |
| (iii) Total Assets to Debt Ratio | = | ₹ 27,50,000 |
| ₹ 7,50,000 | ||
| = | 3.66: 1 |
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End of Solution
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Ratio Analysis
Chapter No. 15 – Cash Flow Statement
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out Part 1 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 1, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 1 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 1 Class 12 by Unimax Publication