Question

Q.5. From the following information, Compute Equity (Shareholders' Funds):
10% Debentures = Rs 3,50,000,
Current Liabilities = Rs 1,00,000, and
Debt to Equity Ratio is 1:1.​

Answer 1

Answer:

4,50,000

Explanation:

total debt/ equity=debt equity ratio

1/1=(350000+100000)/equity

equity=4,50,000

(total debt=long term debt +current liabilities)