Question

if share capital ₹400000, reserved and surplus₹150000, non current assets ₹1800000, current assets ₹400000 then proprietary ratio will be
a. 12%
b.25%
c.8.33%
d.none of these

give correct answer only nahin toh tumhari Amma takli​

Answer 1

Answer: hi friend usually proprietary ratio answer is given in ratio form but in your option it is like percentage3 form i have given my explanation in the way which i was taught by my teacher so if it is wrong please forgive me. For this question the answer that i got is 0.25:1

Explanation:

Proprietary Ratio= Shareholders Funds/Equity divided by Total assets

share capital=400000

reserves= 150000

non current asset=1800000

Shareholders funds= share capital + reserves and surplus

                                = 400000+150000

                                =550000

Total Assets= 400000+1800000=2200000

Proprietary Ratio= 550000/2200000= 0.25:1

so proprietary ratio = 0.25:1