Download App

Accounting Ratios — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyAccounting Ratios3 Marks
Question
Total Assets ₹ 12,50,000; Total Debts ₹ 10,00,000; Current Liabilities ₹ 5,00,000. Calculate Debt to Equity Ratio.
Hints:
  1. Long-term Debts = Total Debts - Current Liabilities.
  2. Shareholders' Funds = Total Assets - Total Debts.
✓

Answer

Total Assets = 12,50,000 Total Debts = 10,00,000 Equity = Total Assets - Total Liabilities = 12,50,000 - 10,00,000 = 2,50,000 Long-term Debts = Total Debts - Current Liabilities = 10,00,000 - 5,00,000 = 5,00,000 $\text{Debt-Equity Ratio}=\frac{\text{Long-Term Debit}}{\text{Equity}}$$=\frac{5,00,000}{2,50,000}=2:1$

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Accounting Ratios→Accounting Ratios — all question types→Accountancy STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

The Directors of a company forfeited 300 shares of ₹ 10 each issued at a premium of ₹ 3 per share, for the non-payment of the first call money of ₹ 2 per share. The final call of ₹ 2 per share has not been made. Half the forfeited shares were reissued at ₹ 1,500 as fully paid-up. Record the journal entries for the forfeiture and reissue of shares.
→
Mr. Arun Birla owns a business and gives the following figures for two successive years:
 
1st Year
2nd Year
 
₹
₹
Revenue from Operations
60,000
1,20,00
Gross Profit
15,000
24,000
Mr. Arun Birla speaks very high of his Manager who has increased the profits from ₹ 15,000 to ₹ 24,000 and describes him very 'Efficient'. Do you agree with him? If not, why?
→
Pass necessary journal entries relating to the issue of Debentures for the following:
Issued ₹ 4,00,000; 9% Debentures of ₹ 100 each at a premium of 8% redeemable at 10% premium.
→
R Ltd. issued 88,00,000, 8 % debenture of ₹ 50 each at a premium of 5 % on July 1, 2000 redeemable at par by conversion of debenture into shares of ₹ 20 each at a premium of ₹ 2 per share on June 30, 2003. Record necessary entries for redemption of debenture.
→
For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e. whether it is Operating, Investing or Financing:
  1. Acqured machinery for ₹ 2,50,000 paying 20% by cheque and executing a bond for the balance payable.
  2. Paid ₹ 2,50,000 to acqire shares in Informa Tech Ltd.and received a dividend of ₹ 50,000 after acquisition.
  3. Sold machinery of original cost of ₹ 2,00,000 with an accumulated depreciation of ₹ 1,60,000 for ₹ 60,000.
→
The following figures have been taken from the published accounts of G. Associates for the two successive years:
Comment upon the profitability for the two years.
→
What is Cash Flow Statement? What are the objectives of preparing it?
→
Pass necessary journal entries relating to the issue of Debentures for the following:
Issued ₹ 80,000; 10% Debentures of ₹ 100 each at par repayable at a premium of 10%.
→
A limited company bought a Building for ​₹ 9,00,000 and the consideration was paid by issuing 10% Debentures of the nominal (face) value of ​₹ 100 each at a discount of 10%.
Give journal entries.
→
Current Liabilities of a company are ₹ 6,00,000. Its Current Ratio is 3 : 1 and Liquid Ratio is 1 : 1. Calculate value of Inventory.
→