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Calculate Debt Equity Ratio from the Following Information: - Accountancy

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प्रश्न

Calculate debt equity ratio from the following information:

 

 

Rs

Total Assets

15,00,000

Current Liabilities

6,00,000

Total Debts

12,00,000

 

 

संख्यात्मक

उत्तर

`"Debt Equity Ratio" = "Debt "/"Equity"`

`"Equity" = "Total Assets" - "Total Debts"`

               = `15,00,000 - 12,00,000`

               = `3,00,000`

Long Term Debts = Total Debts − Current Liabilities

`"Debt Equity Ratio" = "Long Term Debt"/"Equity"`

or,`"Debt Equity Ratio" = "6,00,000"/"3,00,000" = 2/1= 2:1`

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अध्याय 5: Accounting Ratios - Questions for Practice [पृष्ठ २३०]

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एनसीईआरटी Accountancy - Company Accounts and Analysis of Financial Statements [English] Class 12
अध्याय 5 Accounting Ratios
Questions for Practice | Q 7 | पृष्ठ २३०

संबंधित प्रश्न

Short Answer Question

The average age of inventory is viewed as the average length of time inventory is held by the firm for which explain with reasons.


From the following compute Current Ratio:

     
Trade Receivable (Sundry Debtors) 1,80,000   Bills Payable 20,000
Prepaid Expenses 40,000   Sundry Creditors 1,00,000
Cash and Cash Equivalents 50,000   Debentures 4,00,000
Marketable Securities 50,000   Inventories 80,000
Land and Building 5,00,000   Expenses Payable 80,000

The Quick Ratio of a company is 0.8:1. State with reason, whether the following transactions will increase, decrease or not change the Quick Ratio:
(i) Purchase of loose tools for ₹2,000; (ii) Insurance premium paid in advance ₹500; (iii) Sale of goods on credit ₹3,000; (iv) Honoured a bills payable of ₹5,000 on maturity.


Total Assets ₹22,00,000; Fixed Assets ₹10,00,000; Capital Employed ₹20,00,000. There were no Long-term Investments.
Calculate Current Ratio.


Shareholders' Funds  ₹ 1,60,000; Total Debts ₹ 3,60,000; Current Liabilities ₹ 40,000.
Calculate Total Assets to Debt Ratio.


On the basis of the following information, calculate Total Assets to Debt Ratio:

Particulars

Particulars

Capital Employed

50,00,000

Share Capital

35,00,000

Current Liabilities

20,00,000

10% Debentures

10,00,000
Land and Building 60,00,000 General Reserve 3,00,000
Trade Receivable 4,00,000 Surplus, i.e., Balance in Statement of Profit and Loss 2,00,000
Cash and Cash Equivalents 5,00,000    

Investment (Trade)

1,00,000

 

 

Total Debt ₹15,00,000; Current Liablities ₹5,00,000; Capital Employed ₹15,00,000. Calculate Total Assets to Debt Ratio. 


From the following Statement of Profit and Loss for the year ended 31st March, 2019 of Rex Ltd., calculate Inventory Turnover Ratio:

STATEMENT OF PROFIT AND LOSS
for the year ended 31st March, 2019 

Particulars 

Note No.

Amount

(₹)

I. Revenue from Operations (Net Sales)  

6,00,000

II. Expenses:    

(a) Purchases of Stock-in-Trade

 

3,00,000

(b) Change in Inventory of Stock-in-Trade

1

50,000

(c) Employees Benefit Expenses

 

60,000

(d) Other Expenses

2

45,000

Total Expenses  

4,55,000

III. Profit before Tax (I-II)  

1,45,000

IV. Less: Tax  

45,000

V. Profit after Tax (III-IV)  

1,00,000

Notes to Accounts

Particulars

Amount

(₹)

I. Change in Inventory of stock-in-Trade  

Opening Inventory

1,25,000

Less: Closing Inventory

75,000

 

50,000

2. Other Expenses  

Carriage Inwards

15,000

Miscellaneous Expenses 

30,000

 

45,000


Compute Gross Profit Ratio from the following information:
Cost of Revenue from Operations (Cost of Goods Sold) ₹5,40,000; Revenue from Operations (Net Sales) ₹6,00,000.


Opening Inventory ₹80,000; Purchases ₹4,30,900; Direct Expenses ₹4,000; Closing Inventory ₹1,60,000; Administrative Expenses ₹21,100; Selling and Distribution Expenses ₹40,000; Revenue from Operations, i.e., Net Sales ₹10,00,000. Calculate Inventory Turnover Ratio; Gross Profit Ratio; and Opening Ratio.


Following information is given about a company:

     
Revenue From Operations, i.e., Net Sales Gross Profit 1,50,000   Opening Inventory 29,000
Cost of Revenue From Operations 30,000   Closing Inventory 31,000
(Cost of Goods Sold) 1,20,000   Debtors 16,000

From the above information, calculate following ratios:

(i) Gross Profit Ratio,
(ii) Inventory Turnover Ratio, and 
(iii) Trade Receivables Turnover Ratio. 

From the following information, calculate any two of the following ratios:

(i) Current Ratio; 
(ii) Debt to Equity Ratio; and
(iii) Operating Ratio.
Revenue from Operations (Net Sales) ₹ 1,00,000; cost of Revenue from Operations (Cost of Goods Sold) was 80% of sales; Equity Share Capital ₹ 7,00,000; General Reserve ₹ 3,00,000; Operating Expenses ₹ 10,000; Quick Assets ₹ 6,00,000; 9% Debentures ₹ 5,00,000; Closing Inventory ₹ 50,000; Prepaid Expenses ₹ 10,000 and Current Liabilities ₹ 4,00,000. 

Which ratio is considered as safe margin of solvency?


Which of the following are included in traditional classification of ratios?

  1. Liquidity Ratios
  2. Statement of Profit and loss Ratios
  3. Balance Sheet Ratios
  4. Profitability Ratios
  5. Composite Ratios
  6. Solvency Ratios

The current ratio is 2:1
State giving reasons which of the following transactions would improve, reduce and not change the current ratio.
"Payment of dividend."


Debtors (Receivables) Turnover Ratio can be calculated as ______?


Pick the odd one out.


Amount from current assets is realised within ______.


Which one of the following is correct?

  1. Quick Ratio can be more than Current Ratio.
  2. High Inventory Turnover ratio is good for the organisation, except when goods are bought in small lots or sold quickly at low margins to realise cash.
  3. Sum of Operating Ratio and Operating Profit ratio is always 100%.

Debt to Capital Employed ratio is 0.3:1. State whether the following transaction, will improve, decline or will have no change on the Debt to Capital Employed Ratio. Also give reasons for the same.

Sale of Equipment costing ₹ 10,00,000 for ₹ 9,00,000.


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