Question

Calculate proprietary ratio on the basis of following particulars : ₹ 5,00,000 Non Current Assets 3,00,000 Current Assets 0.4 times of total assets Equity Share Capital Preference Share Capital 0.25 times of Equity Share Capital General Reserve 1,50,000 Net Profit before tax 1,20,000 Tax Rate 25% [Ans. Proprietary Ratio: 0.8:1]​ Like my answers I will give you free poits​

Answer 1

Answer:

Proprietary ratio is 5,00,000

Explanation:

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Answer 2

Answer:

Long-term debt = Total external liabilities - current liabilities

= Rs. 5,00,000 - Rs. 1,00,000

= Rs. 4,00,000

Total non-fictitious assets = Total assets - Fictitious assets

= Rs. 10,10,000 - Rs. 10,000

= Rs. 10,00,000

Shareholders funds = Non-fictitious total assets - Total liabilities

= Rs. 10,00,000 - Rs. 5,00,000

= Rs. 5,00,000

Net assets = Total non-fictitious assets - Current liabilities

= Rs. 10,00,000 - Rs. 1,00,000

= Rs. 9,00,000

Proprietary ratio = Shareholders funds/ Capital employed

= Rs. 5,00,000/Rs. 9,00,000

= 0.556