Advertisements
Advertisements
Question
The particulars of Alpha Ltd. are given below:
| Particulars | ₹ |
| Equity Share Capital | 2,00,000 |
| 5% Preference Share Capital | 60,000 |
| General Reserve | 1,20,000 |
| Non-Current Assets | 5,05,000 |
| Current Assets | 1,20,000 |
| Current Liabilities | 40,000 |
| Loan @ 10% Interest | 5,00,000 |
| Tax provided during the year | 30,000 |
| Profit for the current year after Interest and Tax (available for the shareholders) | 90,000 |
The Proprietary Ratio of the company will be:
Options
0.47 : 1
0.75 : 1
0.61 : 1
0.38 : 1
MCQ
Advertisements
Solution
0.75 : 1
Explanation:
Proprietary Ratio = `"Shareholder’s Funds"/"Total Assets"`
Shareholder’s Funds = Equity Share Capital + 5% Pref. Share Capital + General Reserve + Profit for the current year after Interest and Tax
= 2,00,000 + 60,000 + 1,20,000 + 90,000
= ₹ 4,70,000
Total Assets = Non Current Assets + Current Assets
= 5,05,000 + 1,20,000
= ₹ 6,25,000
Proprietary Ratio = `(4,70,000)/(6,25,000)`
= 0.75 : 1
shaalaa.com
Is there an error in this question or solution?
