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Question
Total Assets ₹ 2,60,000; Total Debts ₹ 1,80,000; Current Liabilities ₹ 20,000. Calculate Debt to Equity Ratio.
Solution
Total Debts = 1,80,000
Current Liabilities = 20,000
Long-term Debts = Total Debts − Current Liabilities
= 1,80,000 − 20,000 = 1,60,000
Equity = Total Assets − Total Debt
= 2,60,000 − 1,80,000 = 80,000
`"Debt - Equity Ratio" = "Long Term Debts"/"Equity" = 160000/80000 = 2 : 1`
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Following is the Balance Sheet of Raj Oil Mills Limited as at March 31, 2017. Calculate Current Ratio.
| Particulars | (Rs) |
| I. Equity and Liabilities: | |
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1. Shareholders’ funds |
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a) Share capital |
7,90,000 |
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b) Reserves and surplus |
35,000 |
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2. Current Liabilities |
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a) Trade Payables |
72,000 |
| Total | 8,97,000 |
| II. Assets | |
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1. Non-current Assets |
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Tangible assets |
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2. Current Assets |
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| Particulars |
Amount Rs. |
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