Advertisements
Advertisements
Question
Calculate Debt to Equity Ratio: Equity Share Capital ₹ 5,00,000; General Reserve ₹ 90,000; Accumulated Profits ₹ 50,000; 10% Debentures ₹ 1,30,000; Current Liabilities ₹ 1,00,000.
Sum
Advertisements
Solution
Equity = Equity Share Capital + General Reserve + Accumulated Profits
= 5,00,000 + 90,000 + 50,000 = 6,40,000
Debt = 10% Debentures = 1,30,000
`"Debt- Equity Ratio" = "Debt"/"Equity" = 130000/640000 = 0.203 : 1`
shaalaa.com
Is there an error in this question or solution?
