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The Debt Equity Ratio of a Company is 1: 2. State Whether 'Issue of Bonus Shares' Will Increase, Decrease Or Not Change the Debt Equity Ratio. - Accountancy

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प्रश्न

The Debt Equity ratio of a company is 1: 2. State whether 'Issue of bonus shares' will increase, decrease or not change the Debt Equity Ratio.

योग

उत्तर

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

Issue of bonus shares will increase the value of equity thereby causing a decrease in the debt-equity ratio.

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  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
2018-2019 (March) 67/1/2

संबंधित प्रश्न

From the following information calculate:

(i) Gross Profit Ratio (ii) Inventory Turnover Ratio (iii) Current Ratio (iv) Liquid Ratio (v) Net Profit Ratio (vi) Working capital Ratio:

 

 

Rs

Revenue from Operations

25,20,000

Net Profit

3,60,000

Cast of Revenue from Operations

19,20,000

Long-term Debts

9,00,000

Trade Payables

2,00,000

Average Inventory

8,00,000

Current Assets

7,60,000

Fixed Assets

14,40,000

Current Liabilities

6,00,000

Net Profit before Interest and Tax

8,00,000

 


Calculate Inventory Turnover Ratio if:

Inventory in the beginning is Rs. 76,250, Inventory at the end is 98,500, Gross Revenue from Operations is Rs. 5,20,000, Sales Return is Rs. 20,000, Purchases is Rs. 3,22,250.


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

From the following information, calculate Liquid Ratio:

Particulars

Particulars

₹​

Current Assets

2,00,000 Trade Receivables

1,10,000

Inventories

50,000 Current Liabilities

70,000

Prepaid Expenses 

10,000  

 


From the following information, calculate Proprietary Ratio: 

Particulars

Note No.

Amount
(₹)

I. EQUITY AND LIABILITIES

1. Shareholders' Funds 

 

 

(a) Share Capital

 

6,00,000

(b) Reserves and Surplus

 

1,50,000

2. Current Liabilities

 

 

(a) Trade Payables

 

1,00,000

(b) Other Current Liabilities

 

50,000

(c) Short-term Provisions (Provision for Tax)

 

1,00,000

Total

 

10,00,000

II. ASSETS

 

 

1. Non-Current Assets

 

 

Fixed Assets (Tangible Assets)

 

5,00,000

2. Current Assets

 

 

(a) Current Investments

 

1,50,000

(b) Inventories 

 

1,00,000

(c) Trade Receivables

 

1,50,000

(d) Cash and Cash Equivalents

 

1,00,000

Total

 

10,00,000


Calculate Inventory Turnover Ratio from the following information:

Opening Inventory is ₹50,000; Purchases ₹3,90,000; Revenue from Operations, i.e., Net Sales ₹6,00,000; Gross Profit Ratio 30%.


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

Net Profit before Interest and Tax ₹6,00,000; Net Fixed Assets ₹20,00,000; Net Working Capital ₹10,00,000; Current Assets ₹11,00,000. Calculate Return on Investment.


Liquid ratio is also known as ____________.


Read the following information and answer the given question:

X Ltd. made a profit of 5,00,000 after consideration of the following items:

   
(i) Goodwill written off 5,000
(ii) Depreciation on Fixed Tangible Assets 50,000
(iii) Loss on Sale of Fixed Tangible
Assets (Machinery)
20,000
(iv) Provision for Doubtful Debts 10,000
(v) Gain on Sale of Fixed Tangible Assets (Land) 7,500

Additional information:

Particulars 31.3.2019
(₹)
31.3.2018
(₹)
Trade Receivables 78,800 52,000
Prepaid Expenses 3,000 2,000
Trade Payables 51,000 30,000
Expenses Payable 20,000  

What will be the amount of Trade payables added to get the Cash flow from operations?


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