Share capital rs 1800000 creditors rs 225000 reserves rs 450000 long term debts rs 375000 shareholders funds will be
Answers
Answer:
see the answer below
Explanation:
Debt- Equity Ratio =
Shareholder
′
sFunds
Long−TermDebt
Total Assets = Total Liabilities + Shareholder's Funds
Total Assets = Current Assets + Non-Current Assets
= 1,80,000 + 7,20,000 = 9,00,000
Total Liabilities = Long Term Borrowings + Long-Term Provisions + Current Liabilities
= 4,00,000 +2,00,000+1,00,000 = 7,00,000
Therefore, Shareholder's funds = Total Assets Total Liabilities
= 9,00,000 7,00,000 = 2,00,000 Long-Term Debt = Long Term Borrowings + Long-term Provisions = 4,00,000+2,00,000 = Rs 6,00,000
Therefore, Debt -equity ratio =
2,00,000
6,00,000
=3:1
(b) Current ratio =
CurrentLiabilities
CurrentAssets
(1) A bill payable of Rs. 9,000 was met on maturity will affect:
1.Trade Payable will reduce by Rs.9,000
2.Cash will reduce by Rs.9,000
Simultaneous decreases in current assets and current liabilities will improve current ratio
Issue of share of Rs.10,00,000 to vendor of machinery will affect the following
1.Increases on the balance of machinery
2.Increase in the amount of share capital
This transaction will neither affect current liabilities nor current assets.Thus ,current ratio will remain unchanged.
Total Assets = Total Liabilities Shareholder's Funds
Total Assets = Current Assets +
Non-Current Assets
= 1,80,000 + 7,20,000 =9,00,000
Total Liabilities = Long Term Borrowings + Long-Term Provisions + Current Liabilities
= 4,00,000 +2,00,000+1,00,000 =7,00,000
Therefore, Shareholder's funds = Total Assets Total Liabilities
= 9,00,000 7,00,000 = 2,00,000
Long-Term Debt = Long Term Borrowings + Long-term Provisions 4,00,000+2,00,000 = Rs 6,00,000 = 3:1
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