Question 41:
From the following information, calculate Debt to Equity Ratio: Total Debts
₹6,00,000; Current Liabilities ₹2,00,000
and Capital Employed ₹6,00,000.
Answer:
Debt
to Equity Ratio= Debt÷Equity Ratio
Debt to Equity Ratio=4,00,000/2,00,000=2/1
Debt to Equity Ratio=2:1
Working
note:
Debt (Non-Current
Liabilities)=
Total Debt-Current Liabilities
4,00,000=
6,00,000 - 2,00,000
Equity=
Capital Employed - Non- Current Liabilities
2,00,000=
6,00,000 - 4,00,000
Question 42:
Calculate Debt to Equity Ratio: Total Assets ₹14,00,000,
Total Debt ₹12,00,000; Capital Employed ₹10,00,000.
Answer:
Debt
to Equity Ratio = Debt÷Equity Ratio
Debt
to Equity Ratio = 8,00,000/2,00,000=4/1
Debt to Equity Ratio= 4:1
Working
note:
Total
Assets=Total Liabilities
14,00,000=14,00,000
Equity=Total
Liabilities-Total Debt
2,00,000=14,00,000-12,00,000
Debt (Non- Current Liabilities)= Capital Employed- Equity
8,00,000=10,00,000-2,00,000
Question 43:
Capital Employed ₹8,00,000;
Shareholders' Funds ₹2,00,000. Calculate Debt to Equity Ratio.
Answer:
Shareholders’ Funds = 2,00,000
Capital Employed = 8,00,000
Long- Term Debts = Capital Employed − Shareholders’
Funds
= 8,00,000 − 2,00,000 =
6,00,000
Debt equity ratio= Long-term Debt
/equity=6,00,000/2,00,000=3:1
Question 44:
King Ltd. has Current Ratio of 2.5:1. Its Working Capital is ₹1,20,000. Total Assets are of ₹3,80,000
and Total Debt of ₹2,80,000.
Calculate
Debt to Equity Ratio.
Answer:
Current
Liabilities=x
Current
Assets=2.5x
Working
Capital =1,20,000
Debt to Equity Ratio= Debt÷Equity Ratio
Debt to Equity Ratio=2,00,000/1,00,000=2/1
Debt to Equity Ratio=2:1
Working
note:
Working
Capital= Current Assets-- Current Liabilities
1,20,000=2.5x-x
1,20,000=1.5x
X=1,20,000/1.5=80,000
Debt
(Non- Current Liabilities)= Total Debt-Current
Liabilities
2,00,000=2,80,000-80,000
Equity=
Total Liabilities-Total Debt
1,00,000=3,80,000 - 2,80,000.
Question 45:
Monica
Ltd. has Quick Ratio of 1.5: 1 Its Working Capital is ₹1,20,000 and its inventories are of ₹80,000. Total
Assets of ₹3,80,000 and Total Debts of ₹2,80,000.
Calculate
Debt to Equity Ratio.
Answer:
Debt
to Equity Ratio = Debt÷Equity Ratio
Debt
to Equity Ratio = 2,00,000/1,00,000=2/1
Ts Grewal Solution 2025-2026
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Class 12 / Volume – III
Chapter 4 – Accounting Ratios