Question

Long term Borrowings = 200000
Long term provisions = 100000
Current Liabilities = 50000
Non current assets = 360000
Current assets = 90000
Calculate debt equity ratio​

Answer 1

Answer:

non-curreny asset + current asset - long term borrowings - long term provision - current liabilities = equity

debt = 200000

equity = 100000

debt - equity = 2:1

Answer 2

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

$\implies$$\sf{\frac{3,00,000}{1,00,000}}$

$\implies$$\sf{3:1}$

$\sf\red{Debt = Long - term \: borrowings + Long -term \: provisions}$

$\implies$$\sf{2,00,000+1,00,000}$

$\implies$$\sf{3,00,000}$

$\sf\red{Equity = Non - current \: assets+ Current \: assets -( Long - term \: borrowings + Long -term \: provisions + Current \: liabilities)}$

$\implies$$\sf{3,60,000+90,000-(2,00,000+1,00,000+50,000)}$

$\implies$$\sf{4,50,000-3,50,000}$

$\implies$$\sf{1,00,000}$