Calculate Proprietary Ratio from the following:

Equity Shares Capital ₹ 4,50,000 9% Debentures ₹ 3,00,000

10% Preference Share Capital ₹ 3,20,000 Fixed Assets ₹ 7,00,000

Reserves and Surplus ₹ 65,000 Trade Investment ₹ 2,45,000

Creditors ₹ 1,10,000 Current Assets ₹ 3,00,000

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Solution

Total Assets = Fixed Assets + Trade Investments + Current Assets

= 7,00,000 + 2,45,000 + 3,00,000 = 12,45,000

Shareholders’ Funds = Equity Share Capital + 10% Preference Share Capital + Reserves and Surplus

= 4,50,000 + 3,20,000 + 65,000 = 8,35,000

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From the following infromation, calculate Proprietary Ratio:

Proprietary Ratio = _________________

BALANCE SHEET OF FORTUNE LTD. as at 31st March, 2019
Particulars	Note No.	Amount (₹)
I. EQUITY AND LIABILITIES 1. Shareholders' Funds
(a) Share Capital		6,00,000
(b) Reserves and Surplus		1,50,000
2. Current Liabilities
(a) Trade Payables		1,00,000
(b) Other Current Liabilities		50,000
(c) Short-term Provisions (Provision for Tax)		1,00,000
Total		10,00,000
II. ASSETS
1. Non-Current Assets
Fixed Assets (Tangible Assets)		5,00,000
2. Current Assets
(a) Current Investments		1,50,000
(b) Inventories		1,00,000
(c) Trade Receivables		1,50,000
(d) Cash and Cash Equivalents		1,00,000
Total		10,00,000

Share Capital	₹3,00,000	Reserves and Surplus	₹1,80,000
Non-current Assets	₹13,20,000	Current Assets	₹ 6,00,000

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