From the following Balance Sheet of ABC Ltd- as at 31 st March as 201 19 - Calculate alculate Debt to Equity Ratio-1-2 x2-c

Long term Debt = Debentures = 2,50,000 Equity = Equity Share Capital + 10 = 5,00,000 + 5,00,000 + 2,40,000 = 12,40,000 ...

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Standard XI

Accountancy

AE for Liability

From the foll...

Question

From the following Balance Sheet of ABC Ltd. as at 31st March, 2019, Calculate Debt to Equity Ratio:

Particulars

₹

I. EQUITY AND LIABILITIES

1. Shareholder's Funds

(a) Share Capital:

(i) Equity Share Capital

5,00,000

(ii) 10% Preference Share Capital

5,00,000

10,00,000

(b) Reserves and Surplus

2,40,000

2. Non-Current Liabilities

Long-term Borrowings (Debentures)

2,50,000

3. Current Liabilities :

(a) Trade Payables

4,30,000

(b) Other Current Liabilities

20,000

(c) Short-term Provisions: Provision for Tax

3,00,000

Total

22,40,000

II. ASSETS

1. Non-Current Assets

Fixed Assets:

(i) Tangible Assets

6,40,000

(ii) Intangible Assets

1,00,000

2. Current Assets

(a) Inventories

7,50,000

(b) Trade Receivables

6,40,000

(c) Cash and Cash Equivalents

1,10,000

Total

22,40,000

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Solution

Long-term Debt = Debentures = 2,50,000

Equity = Equity Share Capital + 10% Preference Share Capital + Reserves and Surplus

= 5,00,000 + 5,00,000 + 2,40,000 = 12,40,000

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Similar questions

Q. Following is the Balance Sheet of Fine Products Ltd. as at 31st March, 2019:

Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital: Equity Share Capital		3,50,000	3,00,000
(b) Reserves and Surplus	1	57,000	38,000
2. Current Liabilities
(a) Trade Payables		53,000	35,000
(b) Other Current Liabilities		6,000	8,000
(c) Short-term Provisions	2	32,000	28,000
Total		4,98,000	4,09,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets:
(i) Tangible Assets	3	2,48,000	2,00,000
(ii) Intangible Assets (Goodwill)		40,000	50,000
(b) Non-Current Investments		35,000	10,000
2. Current Assets
(a) Inventories		39,000	57,000
(b) Trade Receivables		1,08,000	75,000
(c) Cash and Bank Balance		28,000	17,000
Total		4,98,000	4,09,000

Notes to Accounts

Particulars	31st March, 2019 (₹)	31st March, 2018 (₹)
1. Reserves and Surplus
General Reserve	30,000	20,000
Surplus, i.e., Balance in Statement of Profit and Loss	27,000	18,000
	57,000	38,000
2. Short-term Provisions
Provision for Tax	32,000	28,000
3. Tangible Fixed Assets
Land and Building	57,000	1,10,000
Plant and Machinery	1,91,000	90,000
	2,48,000	2,00,000

Note: Proposed dividends on equity for the years ended 31st March, 2018 and 2019 are ₹ 39,000 and ₹ 45,000 respectively.

You are required to prepare Cash Flow Statement for the year ended 31st March, 2019.

Following are the balance sheets of Alpha Ltd. as at March 31^st, 2016 and 2017:

Particulars	2016 Rs.	2017 Rs.
I. Equity and Liabilities
Equity share capital	2,00,000	4,00,000
Reserves and surplus	1,00,000	1,50,000
Long-term borrowings	2,00,000	3,00,000
Short-term borrowings	50,000	70,000
Trade payables	30,000	60,000
Short-term provisions	20,000	10,000
Other current liabilities	20,000	30,000
Total	6,20,000	10,20,000
II. Assets
Fixed assets	2,00,000	5,00,000
Non-current investments	1,00,000	1,25,000
Current investments	60,000	80,000
Inventories	1,35,000	1,55,000
Trade receivables	60,000	90,000
Short term loans and advances	40,000	60,000
Cash at bank	25,000	10,000
Total	6,20,000	10,20,000

Q. Balance Sheet of Blue Bell Ltd. as at 31st March, 2019 is given below:

BALANCE SHEET as at 31st March, 2019
Particulars	Note No.	31st March, 2019 (₹)	31st March, 2018 (₹)
I. EQUITY AND LIABILITIES 1. Shareholder's Funds
(a) Share Capital		3,26,000	2,44,000
(b) Reserves and Surplus		1,00,000	1,00,000
2. Non-Current Liabilities
Long-term Borrowings		6,96,000	4,38,000
3. Current Liabilities
Trade Payables		2,98,000	78,000
Total		14,20,000	8,60,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets		5,68,000	4,30,000
(b) Non-Current Investments		6,000	4,000
2. Current Assets
(a) Trade Receivables		6,46,000	3,76,000
(b) Cash and Cash Equivalents		2,00,000	50,000
Total		14,20,000	8,60,000

Prepare Comparative Balance Sheet showing percentage changes from 2018 to 2019.

The following particulars are extracted from the Balance Sheet of Goodwill Enterprises Ltd. as at 31st March, 2018 :

$\begin{matrix} Particulars & Rs. Equity Share Capital & 3,00,000 10 % Preference Share Capital & 1,20,000 Capital Reserve & 60,000 Profit & Loss Balance & 1,20,000 12 % Debentures & 50,000 10 % Mortgage Loan & 1,50,000 Current Liabilities & 2,80,000 Non Current Assets & 4,80,000 Current Assets & 6,00,000 \end{matrix}$

Showing the full working, calculate the following ratios :

(i) Debt-Equity Ratio

(ii) Proprietary Ratio

(iii) Interest Coverage Ratio

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Q. The following balances have been extracted from the books of Vanity Ltd. as at 31

^{s t}

March, 2017:
Trial Balance as at 31

^{s t}

March, 2017

Particulars	Debit (Rs.)	Credit (Rs.)
Equity Share Capital ( $5, 000$ share of $R s . 100$ each fully paid)		$5, 00, 000$
Fixed Assets	$7, 30, 000$
Reserves Surplus		$2, 00, 000$
Inventories	$50, 000$
Cash and Bank Balances	$1, 70, 000$
Creditors		$40, 000$
Bill Payable		$20, 000$
Underwriting Commission on issue of shares	$10, 000$
$5 %$ Debentures ( $\frac{1}{5}$ of the Debentures to be redeemed on 31 $^{s t}$ March, 2018)		$2, 00, 000$
Proposed Dividend		$12, 000$
Interest accrued and due on $5 %$ Debentures		$8, 000$
Trade Receivables	$20, 000$
TOTAL	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 9, 80, 000 - -------- -$	$¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 9, 80, 000 - -------- -$

You are required to prepare as at 31

^{s t}

March, 2017:
(i) The Balance Sheet of Vanity Ltd. as per Schedule III of the Companies Act, 2013
(ii) Notes to Accounts.

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Particulars		₹
I. EQUITY AND LIABILITIES
1. Shareholder's Funds
(a) Share Capital:
(i) Equity Share Capital	5,00,000
(ii) 10% Preference Share Capital	5,00,000	10,00,000
(b) Reserves and Surplus		2,40,000

2. Non-Current Liabilities
Long-term Borrowings (Debentures)		2,50,000

3. Current Liabilities :
(a) Trade Payables		4,30,000
(b) Other Current Liabilities		20,000
(c) Short-term Provisions: Provision for Tax		3,00,000
Total		22,40,000
II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible Assets		6,40,000
(ii) Intangible Assets		1,00,000

2. Current Assets
(a) Inventories		7,50,000
(b) Trade Receivables		6,40,000
(c) Cash and Cash Equivalents		1,10,000
Total		22,40,000

Long-term Debt = Debentures = 2,50,000 Equity = Equity Share Capital + 10% Preference Share Capital + Reserves and Surplus = 5,00,000 + 5,00,000 + 2,40,000 = 12,40,000

Long-term Debt = Debentures = 2,50,000

Equity = Equity Share Capital + 10% Preference Share Capital + Reserves and Surplus

= 5,00,000 + 5,00,000 + 2,40,000 = 12,40,000