Question

Helpp !!

From The following Informations : Calculate
i ) Liquid Ratio
ii ) Debt Equity Ratio

Total Current Assets - ₹1,60,000
Current Liabilities - ₹1,00,000
Inventory - ₹1,00,000
Shareholders Fund - ₹4,00,000
Debentures - ₹3,00,000




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Answer 1

Answer:

i) Liquid Ratio = 0.6 : 1

ii) De-bt Equity Ratio = 0.75 : 1

Explanation:

Solution :

Calculate :

• i) Liquid Ratio
• ii) De-bt Equity Ratio

★ i) Liquid Ratio :

Liquid Ratio = $\sf{\dfrac{Liquid \: Assets}{Current \: Liabilities}}$

Current Liabilities = ₹ 1,00,000

Inventory = ₹ 1,00,000

Liquid Assets = Current Assets - Inventory

$\longrightarrow$ 1,60,000 - 1,00,000

$\longrightarrow$ 60,000

Liquid Assets = ₹ 60,000

$\sf{\longrightarrow{\dfrac{Liquid \: Assets}{Current \: Liabilities}}}$

$\sf{\longrightarrow \: \dfrac{60000}{100000} = \dfrac{0.6}{1}}$

Liquid Ratio = 0.6 : 1

★ ii) De-bt Equity Ratio :

De-bt Equity Ratio =

$\sf{\longrightarrow{\dfrac{Long \: - \: term \: De.bt }{Shareholders \: Fund}}}$

Debentures = ₹ 3,00,000

Shareholders Fund = ₹ 4,00,000

$\sf{\longrightarrow{\dfrac{300000}{400000} = \dfrac{0.75}{1}}}$

De-bt Equity Ratio = 0.75 : 1

Therefore,

i) Liquid Ratio = 0.6 : 1

ii) De-bt Equity Ratio = 0.75 : 1