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Question
From the following information, calculate the Proprietary Ratio:
| Particulars | ₹ |
|---|---|
| Equity Share Capital | 3,00,000 |
| Preference Share Capital | 1,50,000 |
| Reserves and Surplus | 75,000 |
| Debentures | 1,80,000 |
| Trade Payables | 45,000 |
| 7,50,000 | |
| Property, Plant and Equipment | 3,75,000 |
| Short-term Investments | 2,25,000 |
| Other Current Assets | 1,50,000 |
| 7,50,000 |
Numerical
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Solution
Total Assets = Property, Plant and Equipment + Current Assets + Investments
= 3,75,000 + 1,50,000 + 2,25,000 = 7,50,000
Shareholders’ Funds = Equity Share Capital + Preference Share Capital + Reserves and Surplus
= 3,00,000 + 1,50,000 + 75,000 = 5,25,000
Proprietary Ratio
= `"Shareholders' Fund"/"Total Assets" = 525000 / 750000 = 0.70 : 1`
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