Question

ents
Accounting Ratios
4.102
20
42. Calculate Debt to Equity Ratio from the following information:
8,40,000
1.40.000
Fixed Assets (Gross)
Accumulated Depreciation
Non-current Investments
Long-term Loans and Advances
Current Assets
Current Liabilities
10% Long term Borrowings
Long term Provisions
3.50,00
2,80,00
4,20,00
1,40,00
14,000
56,000​

Answer 1

A

Explanation:

Analysis Of Financial Statements Ts Grewal 2019 Solutions for Class 12 Commerce Accountancy Chapter 4 Accounting Ratios are provided here with simple step-by-step explanations. These solutions for Accounting Ratios are extremely popular among Class 12 Commerce students for Accountancy Accounting Ratios Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Analysis Of Financial Statements Ts Grewal 2019 Book of Class 12 Commerce Accountancy Chapter 4 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Analysis Of Financial Statements Ts Grewal 2019 Solutions. All Analysis Of Financial Statements Ts Grewal 2019 Solutions for class Class 12 Commerce Accountancy are prepared by experts and are 100% accurate

Answer 2

$\sf\red{Debt = 10\% \: long- \: term \: borrowings + long- \: term \:provisions}$

$\implies$$\sf{4,20,000+1,40,000}$

$\implies$$\sf{5,60,000}$

$\sf\red{Non- Current \: Assets =Long-term \:loans \:and \: advances+fixed \: assets\: (gross) -\: Accumulated \:Depreciation +\: Non-current\: investments}$

$\implies$$\sf{56,000+8,40,000-1,40,000+14,000}$

$\implies$$\sf{7,70,000}$

$\sf\red{Non-current \: liabilities = 10 \% \:long -term \: borrowings+\: long -term\:provisions }$

$\implies$$\sf{4,20,000+1,40,000}$

$\implies$$\sf{5,60,000}$

$\sf\red{Equity = Non - current \: assets+\:current \:assets - current\: liabilities - non - current\: liabilities}$

$\implies$$\sf{7,70,000+3,50,000-2,80,000-5,60,000}$

$\implies$$\sf{2,80,000}$

$\sf\red{Debt \: to\: equity\: ratio = \frac{debt}{equity}}$

$\implies$$\sf{ \frac{5,60,000}{2,80,000} }$

$\implies$$\sf{2:1}$