Debt to Capital Employed Ratio
Question 71:
From
the following information, calculate Debt to Capital Employed Ratio:
|
|
₹ |
|
Shareholders' Funds |
24,00,000 |
|
Long-term Borrowings (9% Debentures) |
12,00,000 |
|
Current Liabilities |
2,00,000 |
|
Non-current Assets |
28,00,000 |
|
Current Assets |
10,00,000 |
Answer:
Debt
to Capital Employed Ratio=Debt ÷ Capital Employed
Debt
to Capital Employed Ratio=12,00,000 ÷ 36,00,000
Debt
to Capital Employed Ratio=0.33/1
Working
note:
Capital
Employed = Shareholders' Funds + Long-term Borrowings (9% Debentures)
Capital
Employed = 24,00,000+12,00,000=36,00,000
Question 72:
From
the following, calculate 'Debt to Capital Employed Ratio':
9%
Debentures - ₹2,00,000
8%
Public Deposits - ₹5,00,000
Long-term
Provisions - ₹2,00,000
Equity
Share Capital - ₹8,00,000
Reserves
and Surplus - ₹5,00,000
Answer:
Debt
to Capital Employed Ratio= Debt ÷ Capital Employed
Debt
to Capital Employed Ratio= 7,00,000 ÷ 17,00,000
Debt
to Capital Employed Ratio= 0.41/1
Working
note:
Debt= 9%
Debentures - ₹2,00,000+8%
Public Deposits - ₹5,00,000=7,00,000
Equity=
9% Debentures ( ₹2,00,000) + Long-term Provisions - ₹2,00,000+Equity
Share Capital ( ₹8,00,000) + Reserves and Surplus ( ₹5,00,000)=17,00,000
Question 73:
From
the following information, calculate Debt to Capital Employed Ratio:
|
|
₹ |
|
₹ |
|
Capital Employed |
87,00,000 |
Cash and Cash Equivalents |
7,20,000 |
|
Investments |
4,80,000 |
Equity Share Capital |
45,00,000 |
|
Machinery |
14,00,000 |
8% Debentures |
36,00,000 |
|
Trade Receivables |
8,00,000 |
Capital Reserve |
6,80,000 |
Surplus,
ie.,
Balance in Statement of Profit & Loss: ( ₹1,00,000).
Answer:
Debt
to Capital Employed Ratio=Debt ÷ Capital Employed
Debt
to Capital Employed Ratio=36,00,000 ÷ 87,00,000
Debt
to Capital Employed Ratio=0.41/1
Question 74:
Calculate
Debt to Capital Employed Ratio from the following information:
|
|
|
₹ |
|
Shareholders’ Funds |
|
50,00,000 |
|
Non-current Liabilities: |
|
|
|
Long-term Borrowings |
20,00,000 |
|
|
Long-term Provisions |
17,50,000 |
37,50,000 |
|
Non-current Assets: |
|
|
|
Property, plant and Equipment and
Intangible Assets |
90,00,000 |
|
|
Non-current Investments |
12,50,000
|
1,02,50,000 |
|
Current Assets |
|
23,75,000 |
Answer:
Debt
to Capital Employed Ratio=Debt ÷ Capital Employed
Debt
to Capital Employed Ratio=37,50,000÷ 87,50,000
Debt
to Capital Employed Ratio=0.428/1
Debt to Capital Employed Ratio=
0.43:1
Working
note:
Debt
= Long-term Borrowings + Long-term Provisions
37,50,000=20,00,000+17,50,000
Capital
Employed= Debt+Shareholders’ Funds
87,50,000=37,50,000+50,00,000
Question 75:
Calculate
Debt to Capital Employed Ratio from the following information:
Total
Debts ₹60,00,000; Current Assets ₹25,00,000;
Non-Current Assets ₹95,00,000; Working Capital ₹5,00,000.
Answer:
Debt
to Capital Employed Ratio=Debt ÷ Capital Employed
Debt
to Capital Employed Ratio=40,00,000÷ 100,00,000
Debt to Capital Employed Ratio=
0.4:1
Working
note:
Total Assets =Non-Current
Assets-Current Assets
1,20,00,000
=25,00,000+
95,00,000
Total Assets=Total Liabilities
Total Liabilities =1,20,00,000
Equity=Total
Liabilities-Total Debts
60,00,000
= 1,20,00,000-60,00,000
Current Liabilities
= Current Assets-Working Capital
20,00,000=
25,00,000-5,00,000
Debt (Non- Current Liabilities)= Total Debt-Current Liabilities
40,00,000=60,00,000-20,00,000
Capital Employed =Debt+ Equity
1,00,00,000=40,00,000+60,00,000
Ts Grewal Solution 2025-2026
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Class 12 / Volume – III
Chapter 4 – Accounting Ratios