Advertisement Remove all ads

Calculate Debt to Equity Ratio from the Following Information: - Accountancy

Sum

Calculate Debt to Equity Ratio from the following information:

     
Fixed Assets (Gross) 8,40,000   Current Assets 3,50,000
Accumulated Depreciation 1,40,000   Current Liabilities 2,80,000
Non-current Investments 14,000   10% Long-term Borrowings 4,20,000
Long-term Loans and Advances 56,000   Long-term Provisions 1,40,000
Advertisement Remove all ads

Solution

Debt = Long Term Borrowings + Long Term Provisions

= 420000 + 140000 = Rs 560000

Equity = Total Assets - Total Debts

= (840000 - 140000 + 14000 + 56000 + 350000) - (420000 - 140000 - 280000) = Rs 280000

`"Debt- Equity Ratio" = "Debt"/"Equity" = 560000/280000 = 2 : 1`

  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 3 Accounting Ratios
Exercise | Q 40 | Page 95
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×