Math, asked by unique6578, 14 hours ago

Equity share capital 200000 General reserve 160000 10% Debentures 150000 Current liabilities 100000 an Preliminary expenses 10000 hai so what is Debt Equity ratio

Answers

Answered by sadeeqabibi1
0

Answer:

Debt- Equity Ratio =

Shareholder

sFunds

Long−TermDebt

Total Assets = Total Liabilities + Shareholder's Funds

Total Assets = Current Assets + Non-Current Assets

= 1,80,000 + 7,20,000 = 9,00,000

Total Liabilities = Long Term Borrowings + Long-Term Provisions + Current Liabilities

= 4,00,000 +2,00,000+1,00,000 = 7,00,000

Therefore, Shareholder's funds = Total Assets Total Liabilities

= 9,00,000 7,00,000 = 2,00,000 Long-Term Debt = Long Term Borrowings + Long-term Provisions = 4,00,000+2,00,000 = Rs 6,00,000

Therefore, Debt -equity ratio =

2,00,000

6,00,000

=3:1

(b) Current ratio =

CurrentLiabilities

CurrentAssets

(1) A bill payable of Rs. 9,000 was met on maturity will affect:

1.Trade Payable will reduce by Rs.9,000

2.Cash will reduce by Rs.9,000

Simultaneous decreases in current assets and current liabilities will improve current ratio

Issue of share of Rs.10,00,000 to vendor of machinery will affect the following

1.Increases on the balance of machinery

2.Increase in the amount of share capital

This transaction will neither affect current liabilities nor current assets.Thus ,current ratio will remain unchanged

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