Question 56:
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 |
Question 57:
Calculate Total Assets to Debt Ratio from the following information:
|
|
|
|
|
|
|
|
Particulars |
` |
Particulars |
`
|
||
|
Total Assets |
15,00,000 |
Bills Payable |
60,000 |
||
|
Total Debts |
12,00,000 |
Bank Overdraft |
50,000 |
||
|
Creditors |
90,000 |
Outstanding Expenses |
20,000 |
||
Answer:
Total Assets = ` 15,00,000
Current Liabilities = Creditors + Bills Payable + Bank Overdraft + Outstanding
Expenses
= ` 90,000 + ` 60,000 + `
50,000 + ` 20,000 = `
2,20,000
Long-Term Debt = Total Debt – Current Liabilities
= ` 12,00,000 – `
2,20,000 = ` 9,80,000
Total assets to Debt ratio= Total assets / Long-Term Debt
=15,00,000/9,80,000=1.53:1
Question 58:
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 59:
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 |
Proprietary Ratio
Question 60:
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%
Ts Grewal Solution 2023-2024
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Class 12 / Volume – I
Chapter 3 – Accounting Ratio