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12th | Accounting Ratios | Question No. 51 To 55 | Ts Grewal Solution 2022-2023

Question 51:


Calculate ‘Total Assets to Debt ratio’ from the following information;

 

`

Equity share capital

4,00,000

Long-term Borrowings

1,80,000

Surplus, i.e. Balance in statement of profit and Loss

1,00,000

General reserve

70,000

Current Liabilities

30,000

Long-term Provision

1,20,000

Answers;


Total asset to debt ratio= total asset / debt

= 9,00,000/ 3,00,000

=3:1

 

Working note:

 

Wn-1.

Total Assets = Total Liabilities = Equity Share Capital + Long-term Borrowings + Surplus, i.e., Balance in Statement of Profit and Loss + General Reserve + Current Liabilities + Long-term Provisions = 9,00,000

 

Wn-2

Debt = Long-term Borrowings + Long-term Provisions = 3,00,000.

 

Question 52:


From the following information, calculate Total Assets to Debt Ratio:

 

 `

 

 

 `

Fixed Assets (Gross)

6,00,000

 

Accumulated Depreciation

1,00,000

Non-current Investments

10,000

 

Long-term Loans and Advances

40,000

Current Assets

2,50,000

 

Current Liabilities

2,00,000

Long-term Borrowings

3,00,000

 

Long-term Provisions

1,00,000

 

Answer:


Debts

=

Long-term Borrowings+Long Term Provisions

 

=

=

3,00,000+1,00,000

 ` 4,00,000

 

Total Assets

=

=

=

Non-Current Assets + Current Assets      

6,00,000 -1,00,000+10,000+2,50,000+40,000

 ` 8,00,000

 

Total Assets to Debt Ratio

=

Total Assets/Debt                                       

 

=

=

8,00,0004,00,000

2:1

 

Question 53:


From the following information, calculate Proprietary Ratio:
 

Share Capital

 `3,00,000

Reserves and Surplus

 `1,80,000

Non-current Assets

 `13,20,000

Current Assets

 ` 6,00,000

 

Answer:


Proprietary Ratio=Shareholders' Funds

Total AssetsProprietary Ratio=Share Capital+Reserves and SurplusNon-Current Assets+Current 

Assets to Proprietary Ratio =3,00,000+1,80,000/13,20,000+6,00,000=0.25:1 or 25%

 

Question 54


From the following information, calculate Proprietary Ratio:

 

 `

Equity Share Capital

3,00,000

Preference Share Capital

1,50,000

Reserves and Surplus

75,000

Debentures

1,80,000

Trade Payables

45,000

 

7,50,000

Fixed Assets

3,75,000

Short-term Investments

2,25,000

Other Current Assets

1,50,000

 

7,50,000

 

 

 

Answer:


Proprietary Ratio= Shareholders’ fund/Total Assets

Proprietary Ratio= 5,25,000×100/7,50,000=70%

Total Assets = Fixed Assets + Current Assets + Investments

Total Assets = 3,75,000 + 1,50,000 + 2,25,000 = 7,50,000

Shareholders’ Funds = Equity Share Capital + Preference Share Capital + Reserves and Surplus

= 3,00,000 + 1,50,000 + 75,000 = 5,25,000

 

Question 55:


Calculate Proprietary Ratio from the following:

Equity Shares Capital

 ` 4,50,000

9% Debentures

 ` 3,00,000

10% Preference Share Capital

 ` 3,20,000

Fixed Assets

 ` 7,00,000

Reserves and Surplus

 ` 65,000

Trade Investment

 ` 2,45,000

Creditors

 ` 1,10,000

Current Assets

 ` 3,00,000

Answer:


Total Assets = Fixed Assets + Trade Investments + Current Assets

= 7,00,000 + 2,45,000 + 3,00,000 = 12,45,000

Shareholders’ Funds = Equity Share Capital + 10% Preference Share Capital + Reserves and Surplus

= 4,50,000 + 3,20,000 + 65,000 = 8,35,000

Proprietary Ratio= Shareholders’ fund/Total Assets=8,35,000/12,45,000=0.67:1

 

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Ts Grewal Solution 2022-2023

Class 12 / Volume – 3

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