From the following, calculate (a) Debt Equity Ratio (b) Total Assets to Debt Ratio (c) Proprietary Ratio.

Rs

Equity Share Capital

75,000

Preference Share Capital

25,000

General Reserve

45,000

Balance in the Statement of Profits and Loss

30,000

Debentures

75,000

Trade Payables

40,000

Outstanding Expenses

10,000

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Solution

(a)

Debt = Debentures = 75,000

(b)

(c)

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Q. From the following calculate
(a) Debt Equity Ratio
(b) Total Assets To Debt Ratio
(c) Propietory Ratio

$\begin{matrix} Items & Amt. (Rs.) Equity Share Capital & 75, 000 Preference Share Capital & 25, 000 General Reserve & 50, 000 Accumulated Profits & 30, 000 Debentures & 75, 000 Sundry Creditors & 40, 000 Outstanding Expenses & 10, 000 Preliminary Expenses to be written off & 5, 000 \end{matrix}$

Q. Calculate Current Ratio, Quick Ratio and Debt to Equity Ratio from the figures given below:


Particulars		₹
Inventory		30,000
Prepaid Expenses		2,000
Other Current Assets		50,000
Current Liabilities		40,000
12% Debentures		30,000
Accumulated Profits		10,000
Equity Share Capital		1,00,000
Non-current Investments		15,000

Compute Gross Profit Ratio, Working Capital Turnover Ratio, Debt Equity Ratio and Proprietary Ratio from the following information:

	Rs
Paid-up Share Capital	5,00,000
Current Assets	4,00,000
Revenue from Operations	10,00,000
13% Debentures	2,00,000
Current Liabilities	2,80,000
Cost of Revenue from Operations	6,00,000

Calculate (i) Debt-Equity Ratio; (ii) Total Assets to Debt Ratio; and (iii) Proprietary Ratio from the following particulars :

$\begin{matrix} Particulars & Rs. Equity Share Capital & 3, 00, 000 Preference Share Capital & 1, 00, 000 General Reserve & 60, 000 Profit & Loss Balance & 40, 000 12 % Mortgage Loan & 1, 80, 000 Current Liabilities & 1, 20, 000 Non Current Assets & 4, 50, 000 Current Assets & 3, 50, 000 \end{matrix}$

What conclusions do you draw from the above ratios ?

Q. Calculate Debt to Equity Ratio: Equity Share Capital ₹ 5,00,000; General Reserve ₹ 90,000; Accumulated Profits ₹ 50,000; 10% Debentures ₹ 1,30,000; Current Liabilities ₹ 1,00,000.

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	Rs
Equity Share Capital	75,000
Preference Share Capital	25,000
General Reserve	45,000
Balance in the Statement of Profits and Loss	30,000
Debentures	75,000
Trade Payables	40,000
Outstanding Expenses	10,000

(a) Debt = Debentures = 75,000 (b) (c)

(a)

Debt = Debentures = 75,000

(b)

(c)