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Question
| Particulars | ₹ |
| Current Assets | 3,00,000 |
| Non-Current Assets | 13,00,000 |
| Long term Borrowings | 5,00,000 |
| Long term Provisions | 3,00,000 |
| 6% Debentures | 2,00,000 |
| Trade Payables | 2,00,000 |
| Share Capital | 4,00,000 |
| Shareholder’s Funds | 6,00,000 |
Assuming Debt Equity Ratio of 2 : 1, which of the following will decrease this ratio?
Options
Redemption of Preference Shares.
Conversion of Debentures into shares.
Purchase of a fixed asset on long-term deferred basis.
Sale of a fixed asset at a loss.
MCQ
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Solution
Conversion of Debentures into shares.
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