Question

On the basis of the following data, calculate Proprietary ratio:
Equity share capital - Rs.3,00,000
Debentures - Rs.90,000
Current liabilities - Rs.30,000
Statement of Profit & Loss Debit Balance - Rs.20,000
(a) 75% (b) 80% (c) 70% (d) 82%​

Answer 1

Answer:

proprietary ratio =

shareholder fund/total assets

shareholder fund = 300000-20000=280000

Total assets = total liabilities

so total assets is = 300000+90000+30000-20000=400000

Ratio = 280000/400000×100= 70%