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Calculate Debt to Equity Ratio from the Following Information: - Accountancy

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प्रश्न

Calculate Debt to Equity Ratio from the following information:

     
Fixed Assets (Gross) 8,40,000   Current Assets 3,50,000
Accumulated Depreciation 1,40,000   Current Liabilities 2,80,000
Non-current Investments 14,000   10% Long-term Borrowings 4,20,000
Long-term Loans and Advances 56,000   Long-term Provisions 1,40,000
योग

उत्तर

Debt = Long Term Borrowings + Long Term Provisions

= 420000 + 140000 = Rs 560000

Equity = Total Assets - Total Debts

= (840000 - 140000 + 14000 + 56000 + 350000) - (420000 - 140000 - 280000) = Rs 280000

`"Debt- Equity Ratio" = "Debt"/"Equity" = 560000/280000 = 2 : 1`

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  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 3: Accounting Ratios - Exercises [पृष्ठ ९५]

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टीएस ग्रेवाल Accountancy - Analysis of Financial Statements [English] Class 12
अध्याय 3 Accounting Ratios
Exercises | Q 40 | पृष्ठ ९५

संबंधित प्रश्न

Current Ratio is 3.5 : 1. Working Capital is Rs 90,000. Calculate the amount of Current Assets and Current Liabilities.


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 the following ratio on the basis of following information:
(i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio (v) Fixed Assets Turnover Ratio

  Rs.
Gross Profit 50,000
Revenue from Operations 100,000
Inventory 15,000
Trade Receivables 27,500
Cash and Cash Equivalents 17,500
Current Liabilities 40,000
Land & Building 50,000
Plant & Machinery 30,000
Furniture 20,000

Current Ratio is 2.5, Working Capital is ₹ 1,50,000. Calculate the amount of Current Assets and Current Liabilities.


Trade Payables ₹ 50,000, Working Capital ₹ 9,00,000, Current Liabilities ₹ 3,00,000. Calculate Current Ratio.


Calculate Total Assets to Debt Ratio from the following information:
Long-term Debts ₹ 4,00,000; total Assets  ₹ 7,70,000.


Total Debt ₹ 60,00,000; Shareholders' Funds ₹ 10,00,000; Reserves and Surplus  ₹ 2,50,000; Current Assets ₹ 25,00,000; Working Capital ₹ 5,00,000. Calculate Total Assets to Debt Ratio.


From the following Information, calculate Inventory Turnover Ratio:
Credit Revenue from Operations ₹ 3,00,000; Cash Revenue from Operations ₹ 1,00,000, Gross Profit 25% of Cost, Closing Inventory was 3 times the Opening Inventory. Opening Inventory was 10% of Cost of Revenue from Operations.


From the following information, calculate Operating Ratio:

Cost of Revenue     Revenue from Operation:  
from Operations (Cost of Goods Sold) ₹52,000   Gross Sales ₹ 88,000
Operating Expenses ₹18,000   Sales Return ₹ 8,000

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.


From the following information, calculate Inventory Turnover Ratio; Operating Ratio and Working Capital Turnover Ratio:
Opening Inventory ₹ 28,000; Closing Inventory ₹ 22,000; Purchases ₹ 46,000; Revenue from Operations,  i.e., Net Sales ₹ 80,000; Return ₹10,000; Carriage Inwards ₹ 4,000; Office Expenses ₹ 4,000; Selling and Distribution Expenses ₹ 2,000; Working Capital ₹ 40,000. 


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


Which Ratio establishes the relationship between current assets and current liabilities?


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

Ideal Current Ratio is ______.


Amount from current assets is realised within ______.


Assertion (A): Debt to Equity Ratio of 2 : 1 is considered satisfactory. Generally, a Low Ratio is considered favourable.

Reason (R): This ratio indicates the proportionate claims of owners and outsiders on firm's assets. High Ratio shows claims of outsiders are greater but Low Ratio shows outsiders claims are less.


Which of the following measures the firm's ability to meet its long-term obligations?


What relationship will be established to study:

Trade Receivables Turnover


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