Total Assets to Debt Ratio
Question 51:
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 52:
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
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 ₹12,00,000;
Shareholders' Funds ₹2,00,000; Reserves and Surplus ₹50,000;
Current Assets ₹5,00,000; Working Capital ₹1,00,000. Calculate
Total Assets to Debt Ratio.
Answer:
|
Working Capital |
= |
Current Assets-Current Liabilities |
|
1,00,000 |
= |
5,00,000-Current Liabilities |
|
Current Liabilities |
= |
₹4,00,000 |
|
Debt |
= |
Total Debt-Current Liabilities |
|
|
= |
12,00,000 - 4,00,000 |
|
|
= |
₹8,00,000 |
|
Total Assets |
= |
Shareholders' Funds+ Total Debt |
|
|
= = |
2,00,000+12,00,000 ₹14,00,000 |
|
Total Assets to Debt Ratio |
= |
Total Assets/Debt |
|
|
= = |
14,00,000/8,00,000 1.75:1 |
Ts Grewal Solution 2025-2026
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Class 12 / Volume – III
Chapter 4 – Accounting Ratios