Advertisements
Advertisements
Question
Calculate the value of Current Assets of X Ltd. from the following information:
| ₹ | |
| Equity Share Capital | 25,00,000 |
| 6% Preference Share Capital | 5,00,000 |
| General Reserve | 8,00,000 |
| Profit & Loss Balance | (2,00,000) |
| Non-Current Assets | 30,00,000 |
| Proprietary Ratio | 0.75 : 1 |
Numerical
Advertisements
Solution
Proprietary Ratio = `"Shareholder’s Funds"/"Total Assets"`
Shareholder’s Funds = Equity Share Capital + 6% Preference Share Capital + General Reserve + Profit & Loss balance
= ₹ 25,00,000 + ₹ 5,00,000 + ₹ 8,00,000 + ₹ 2,00,000
= ₹ 36,00,000
Proprietary Ratio = 0.75 : 1
0.75 = `(₹ 36,00,000)/("Total Assets")`
Total Assets = `(₹ 36,00,000)/0.75`
= ₹ 48,00,000
Current Assets = Total Assets − Non-Current Assets
= ₹ 48,00,000 − ₹ 30,00,000
= ₹ 18,00,000
shaalaa.com
Is there an error in this question or solution?
