Question

Calculate Total assets to debt ratio from the following
Total assets Rs 25,00,000
Loan from world bank Rs 5,00,000
15% Debentures Rs 6,00,000
Public deposits (long term) Rs 4,00,000
Brokerage on issue of shares Rs 1,00,000

Answer 1

Answer:

1 : 0.60

Explanation:

Total Assets to Debt Ratio = Total Assets/Debt

$=\frac{25,00,000}{15,00,000(W.N.1)}$

= 5/3 = 1 : 0.60

Working Notes:

1.

Debt

= Loan from World Bank + 15% Debentures + Public Deposits (Long Term)

= 5,00,000 + 6,00,000 + 4,00,000

= ₹ 15,00,000