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From the Following Information, Calculate Proprietary Ratio: - Accountancy

Sum

From the following information, calculate Proprietary Ratio:

Share Capital ₹ 300000
Reserve and Surplus ₹ 180000
Non-current Assets ₹ 1320000
Current Assets ₹ 600000
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Solution

Proprietary Ratio = `"Shareholders' Fund"/"Total Assets"` 

Proprietary Ratio

= `("Share Capital + Reserve and Surplus")/("Non-current Assets + Current Assets")` 

Proprietary Ratio = `(300000 + 180000)/(1320000 + 600000) = 0.25 : 1` or 25 %

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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 3 Accounting Ratios
Exercise | Q 53 | Page 97
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