Question

Q. 44. The proprietary ratio of M Ltd. is 0.80 : 1.
State with reasons whether the following transactions will increase, decrease o
not change the proprietary ratio :
(1) Obtained a loan from bank 72,00,000 payable after five years.
(ii) Purchased machinery for cash *75,000.
(iii) Redeemed 5% redeemable preference shares 1,00,000.
(iv) Issued equity shares to the vendors of machinery purchased for 4,00,000,
(C.B.S.E. 2017, Outside Delhi​

Answer 1

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