Question 56:
From the following information, calculate 'Total Assets to Debt Ratio':
Particulars |
₹ |
Particulars |
₹ |
Current Assets |
8,00,000 |
9% Long-term Bank Loan |
1,00,000 |
Current Liabilities |
5,00,000 |
Shareholders' Funds |
15,00,000 |
10% Debentures |
4,00,000 |
|
|
Answer:
Formula:
Total Assets to Debt Ratio=Total Assets÷Debt
Total Assets = Current Assets + Non-current Assets
Given:
Shareholders' Funds = ₹15,00,000
Debt =
Long-term Bank Loan ( ₹1,00,000) + 10% Debentures ( ₹4,00,000) + Current
Liabilities ( ₹5,00,000)
Total Debt = ₹10,00,000
Total Assets= ₹15,00,000+ ₹10,00,000= ₹25,00,000
Debt = 9% Long-term Bank Loan + 10%
Debentures
Debt = ₹1,00,000 + ₹4,00,000 = ₹5,00,000
Total Assets to Debt Ratio= ₹5,00,000÷ ₹25,00,000=5:1
Question 57:
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 58:
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 |
|
|
= = |
8,00,000/4,00,000 2:1 |
Proprietary Ratio
Question 59:
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 60:
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
Ts Grewal Solution 2026-2027
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Class 12 / Volume – III
Chapter 4 – Accounting Ratios