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प्रश्न
When Debt to Equity Ratio is 2, state giving reason, whether this ratio will increase or decrease or will have no change in each of the following cases:
(i) Sale of Land (Book value ₹4,00,000) for ₹5,00,000; (ii) Issue of Equity Shares for the purchase of Plant and Machinery worth ₹10,00,000; (iii) Issue of Preference Shares for redemption of 13% Debentures, worth ₹10,00,000.
उत्तर
Debt-Equity Ratio = 2:1
Let Long-term loan = Rs 20,00,000
Shareholders’ Funds = Rs 10,00,000
(i) Sale of Land (Book Value Rs 4,00,000) for Rs 5,00,000- Decrease
Reason: This transaction will result increase in Shareholders’ Funds by Rs 1,00,000 as profit on sale of Land.
Shareholders’ Funds after adjusting profit on sale of land = 10,00,000 + 1,00,000 = Rs 11,00,000
`"Debt - Equity Ratio" = 2000000/1100000 = 1.81 : 1`
(ii) Issue of Equity share for the purchase of plant and Machinery worth Rs 10,00,000- Decrease
Reason: This transaction will increase the amount of Shareholders Fund by Rs 10,00,000 in the form of equity shares and have no effect on Long-term Loans.
Debt-Equity Ratio = `2000000/(100000 + 1000000) = 1 : 1`
(iii) Issue of preference Shares for redemption of 13% Debentures worth Rs 10,00,000- Decrease
Reason: This transaction will lead to decrease in Long-term Loan by Rs 10,00,000 in the form of redemption of debentures and increase in Shareholders’ Funds with the same amount in the form of Preference Shares.
Debt-Equity Ratio = `(2000000 - 1000000)/(1000000 + 1000000) = 0.5 : 1`
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संबंधित प्रश्न
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|
|
Rs |
|
Total Assets |
15,00,000 |
|
Current Liabilities |
6,00,000 |
|
Total Debts |
12,00,000 |
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| ₹ | ₹ | |||
| 10% Preference Share Capital | 5,00,000 | Current Assets | 12,00,000 | |
| Equity Share Capital | 15,00,000 | Current Liabilities | 8,00,000 | |
| Securities Premium Reserve | 1,00,000 | Investments (in other companies) | 2,00,000 | |
| Reserves and Surplus | 4,00,000 | Fixed Assets-Cost | 60,00,000 | |
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| Particulars | ₹ |
Particulars |
₹
|
||
| Total Assets | 15,00,000 | Bills Payable | 60,000 | ||
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| Creditors | 90,000 |
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20,000 |
||
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| ₹ | |
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| ₹ | |
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| ₹ | ₹ | |||
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| Current Liabilities | 35,000 | Operating Expenses | 40,000 | |
| Inventory | 30,000 | Cost of Goods Sold or Cost of Revenue from Operations | 60,000 |
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|
Particulars |
₹ |
||
|
Inventory |
30,000 |
||
| Prepaid Expenses | 2,000 | ||
| Other Current Assets | 50,000 | ||
| Current Liabilities | 40,000 | ||
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|
Non-current Investments |
15,000 |
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