ABC Company has shareholders' equity of ₹40,00,000 and total assets of ₹1,00,00,000. There is no goodwill on its balance sheet, nor any intangible assets. Its proprietary ratio is:

[2 marks]

60%

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50%

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70%

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40%

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Solution

The correct option is D 40%
Proprietary Ratio =

$\frac{S h a r e h o l d e r s^{'} F u n d}{T o t a l A s s e t s} \times 100$

= $\frac{₹ 40, 000}{₹ 1, 00, 000}$ $\times 100$

= 40%

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ABC Company has shareholders' equity of Rs 20,00,000 and total assets of Rs 50,00,000. There is no goodwill on its balance sheet, nor any intangible assets. Its proprietary ratio is:

From the following Balance Sheets of X Ltd. as at 31st March, 2016 and 2015, prepare a common size Balance Sheet.
$\begin{matrix} Particulars & Note & Amount (Rs) & Amount (Rs) No. & 31 - 3 - 2016 & 31 - 3 - 2015 1. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital & 80, 00, 000 & 60, 00, 000 (b) Reserves and Surplus & 12, 00, 000 & 8, 00, 000 (2) Non-current liabilities Long term borrowings & 24, 00, 000 & 20, 00, 000 (3) Current liability : Trade Payables & 4, 00, 000 & 12, 00, 000 Total & 1, 20, 00, 000 & 1, 00, 00, 000 II. Assets (1) Non-current Assets Fixed Assets (a) Tangible & 80, 00, 000 & 60, 00, 000 (b) Intangible & 4, 00, 000 & 12, 00, 000 (2) Current Assets (a) Inventories & 24, 00, 000 & 20, 00, 000 (b) Cash and cash equivalents & 12, 00, 000 & 8, 00, 000 Total & 1, 20, 00, 000 & 1, 00, 00, 000 \end{matrix}$

Q. Total assets minus shareholders’ equity is:

[0.88 marks]

A company has to disclose depreciation provided on fixed assets and amortization of intangible assets under ___

Following is the Balance Sheet of Raj Oil Mills Limited as at March 31, 2017. Calculate Current Ratio.

Particulars	(Rs)
I. Equity and Liabilities:
1. Shareholders’ funds
a) Share capital	7,90,000
b) Reserves and surplus	35,000
2. Current Liabilities
a) Trade Payables	72,000
Total	8,97,000
II. Assets
1. Non-current Assets
a) Fixed assets
Tangible assets	7,53,000
2. Current Assets
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b) Trade Receivables	28,800
c) Cash and cash equivalents	59,400
Total	8,97,000

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ABC Company has shareholders' equity of ₹40,00,000 and total assets of ₹1,00,00,000. There is no goodwill on its balance sheet, nor any intangible assets. Its proprietary ratio is: [2 marks]

The correct option is D 40%Proprietary Ratio = Shareholders′ FundTotal Assets×100 = ₹40,000₹1,00,000 ×100 = 40%

ABC Company has shareholders' equity of ₹40,00,000 and total assets of ₹1,00,00,000. There is no goodwill on its balance sheet, nor any intangible assets. Its proprietary ratio is:

[2 marks]

The correct option is D 40%
Proprietary Ratio =

$\frac{S h a r e h o l d e r s^{'} F u n d}{T o t a l A s s e t s} \times 100$

= $\frac{₹ 40, 000}{₹ 1, 00, 000}$ $\times 100$

= 40%