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12th | Accounting Ratio | Question No. 51 To 55 | Ts Grewal Solution 2023-2024

Question 51:


From the following Balance Sheet of ABC Ltd. as at 31st March, 2022, Calculate Debt to Equity Ratio:

Particulars

 `

I. EQUITY AND LIABILITIES

 

1. Shareholder's Funds

 

(a) Share Capital:

 

(i) Equity Share Capital

5,00,000

 

(ii) 10% Preference Share Capital

5,00,000

10,00,000

(b) Reserves and Surplus

2,40,000

 

 

2. Non-Current Liabilities 

 

Long-term Borrowings (Debentures)

2,50,000

 

 

3. Current Liabilities :

 

(a) Trade Payables

4,30,000

(b) Other Current Liabilities

20,000

(c) Short-term Provisions: Provision for Tax

3,00,000

Total

22,40,000

II. ASSETS

 

1. Non-Current Assets

 

Fixed Assets:

 

(i) Tangible Assets

6,40,000

(ii) Intangible Assets

1,00,000

 

 

2. Current Assets

 

(a) Inventories

7,50,000

(b) Trade Receivables

6,40,000

(c) Cash and Cash Equivalents

1,10,000

Total

22,40,000

 

 

Answer:


Long-term Debt = Debentures = 2,50,000

Equity = Equity Share Capital + 10% Preference Share Capital + Reserves and Surplus

= 5,00,000 + 5,00,000 + 2,40,000 = 12,40,000

Debt equity ratio= Long-term Debt /equity=2,50,000/12,40,000=0.2:1

Total Assets to Debt Ratio

Question 52:


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

Answer:


Long-term Debts = 4,00,000

Total Assets = 7,70,000

Total assets to Debt ratio= Total assets / Debt =7,70,000/4,00,000=1.925:1

 

Question 53:


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

Answer:


Total Debts = 3,60,000

Shareholders’ Funds = 1,60,000

Current Liabilities = 40,000

Total Assets = Total Debts + Shareholders’ Funds

= 3,60,000 + 1,60,000 = 5,20,000

Long-term Debts = Total Debt − Current Liabilities

= 3,60,000 − 40,000 = 3,20,000

Total assets to Debt ratio= Total assets / Debt =5,20,000/3,20,000=13:8 or 1.625:1

 

Question 54:


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.

Answer:


Total Assets to Debt Ratio =  Total Assets/Long Term Debt
Working Capital = Current Assets – Current Liabilities
           5,00,000 = 25,00,000 – Current Liabilities
              Current Liabilities =  ` 20,00,000
Long Term Debts = Total Debt – Current Liabilities
                              = 60,00,000 – 20,00,000
                              =  ` 40,00,000
Total Assets = Total Liabilities = Total Debt + Shareholders’ Funds
                     = 60,00,000 + 10,00,000
                    =  ` 70,00,000
Total Assets to Debt Ratio = 70,00,000/40,00,000 = 7 : 4 or 1.75 : 1

 

Question 55:


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

Answer:


Total Assets to Debt Ratio =  Total Assets/Long Term Debt

Capital Employed = Total Assets – Current Liabilities
            15,00,000 = Total Assets – 5,00,000
         Total Assets =  ` 20,00,000
Long Term Debt = Total Debt – Current Liabilities
                              = 15,00,000 – 5,00,000
                              =  ` 10,00,000

Total Assets to Debt Ratio = 20,00,000/10,00,000 = 2 : 1

 

Ts Grewal Solution 2023-2024

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Class 12 / Volume – I

Chapter 3 – Accounting Ratio

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