Calculate proprietary ratio, from the following information:
Total external liabilities = Rs. 5,00,000
Balance sheet total = Rs. 10,10,000
Current liabilities = Rs. 1,00,000
Fictitious assets = Rs. 10,000

0.556

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

0.54

No worries! We‘ve got your back. Try BYJU‘S free classes today!

0.528

No worries! We‘ve got your back. Try BYJU‘S free classes today!

0.518

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C 0.556
Long-term debt = Total external liabilities - current liabilities
= Rs. 5,00,000 - Rs. 1,00,000
= Rs. 4,00,000
Total non-fictitious assets = Total assets - Fictitious assets
= Rs. 10,10,000 - Rs. 10,000
= Rs. 10,00,000
Shareholders funds = Non-fictitious total assets - Total liabilities
= Rs. 10,00,000 - Rs. 5,00,000
= Rs. 5,00,000
Net assets = Total non-fictitious assets - Current liabilities
= Rs. 10,00,000 - Rs. 1,00,000
= Rs. 9,00,000
Proprietary ratio = Shareholders funds/ Capital employed
= Rs. 5,00,000/Rs. 9,00,000
= 0.556

Suggest Corrections

Similar questions

Q. Calculate debt ratio, from the following information:
Total external liabilities = Rs. 5,00,000
Balance sheet total = Rs. 10,10,000
Current liabilities = Rs. 1,00,000
Fictitious assets = Rs. 10,000

Q. Calculate debt equity ratio, from the following information:
Total external liabilities = Rs. 5,00,000
Balance sheet total = Rs. 10,10,000
Current liabilities = Rs. 1,00,000
Fictitious assets = Rs. 10,000

Apply common size analysis to ABC Company's selling expenses given the following information: Selling expenses = Rs. 60,000; Revenue from Operations = Rs. 2,50,000; Total assets = Rs. 4,25,000; Total liabilities = Rs. 3,00,000.

Apply common size analysis to ABC Company's cash balance given the following information: cash = Rs 1,00,000; total revenues = Rs 2,50,000; total assets = Rs 4,25,000; total liabilities = Rs3,00,000.

Calculate debt equity ratio from the following information:

	Rs
Total Assets	15,00,000
Current Liabilities	6,00,000
Total Debts	12,00,000

Join BYJU'S Learning Program

Calculate proprietary ratio, from the following information:Total external liabilities = Rs. 5,00,000Balance sheet total = Rs. 10,10,000Current liabilities = Rs. 1,00,000Fictitious assets = Rs. 10,000

Calculate proprietary ratio, from the following information:
Total external liabilities = Rs. 5,00,000
Balance sheet total = Rs. 10,10,000
Current liabilities = Rs. 1,00,000
Fictitious assets = Rs. 10,000