Total Assets ₹12,50,000; Total Debts ₹10,00,000; Current Liabilities ₹5,00,000.
Calculate Debt to Equity Ratio.

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Solution

Total Assets = 12,50,000

Total Debts = 10,00,000

Equity = Total Assets − Total Liabilities

= 12,50,000 − 10,00,000 = 2,50,000

Long-term Debts = Total Debts − Current Liabilities

= 10,00,000 − 5,00,000 = 5,00,000

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Q. From the following information, calculate Debt to Equity Ratio:

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10,000 Equity Shares of ₹ 10 each fully paid	1,00,000
5,000; 9% Preference Shares of ₹ 10 each fully paid	50,000
General Reserve	45,000
Surplus, i.e., Balance in Statement of Profit and Loss	20,000
10% Debentures	75,000
Current Liabilities	50,000

Calculate Debt Equity Ratio from the following information:

$\begin{matrix} Rs. Equity Share Capital & 3, 00, 000 Preference Share Capital & 1, 00, 000 General Reserve & 1, 30, 000 Securities Premium & 40, 000 Profit & Loss Balance & 70, 000 10 % Debentures & 4, 50, 000 Loan from Bank & 3, 50, 000 Current Liabilities & 20, 000 \end{matrix}$

Q. Debt - Equity ratio may be calculated as _______.

Calculate debt equity ratio from the following information

$\begin{matrix} Items & Rs. Total Assets & 15,00,000 Current Liabilities & 6,00,000 Total Debts & 12,00,000 \end{matrix}$

Q. Debt to Equity ratio is the ratio of debt to equity or shareholders’ funds

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Total Assets ₹12,50,000; Total Debts ₹10,00,000; Current Liabilities ₹5,00,000. Calculate Debt to Equity Ratio.

Total Assets = 12,50,000 Total Debts = 10,00,000 Equity = Total Assets − Total Liabilities = 12,50,000 − 10,00,000 = 2,50,000 Long-term Debts = Total Debts − Current Liabilities = 10,00,000 − 5,00,000 = 5,00,000

Total Assets ₹12,50,000; Total Debts ₹10,00,000; Current Liabilities ₹5,00,000.
Calculate Debt to Equity Ratio.

Total Assets = 12,50,000

Total Debts = 10,00,000

Equity = Total Assets − Total Liabilities

= 12,50,000 − 10,00,000 = 2,50,000

Long-term Debts = Total Debts − Current Liabilities

= 10,00,000 − 5,00,000 = 5,00,000