3 Marks Question

Question 13 Marks

From the following, calculate Debt to Capital Employed Ratio:

	₹
9% Debentures	2,00,000
8% Public Deposits	5,00,000
Long-term Provisions	2,00,000
Equity Share Capital	8,00,000
Reserves and Surplus	5,00,000

Answer

Capital employed = Shareholder fund + Non-current liability
Capital employed = 8,00,000 + 5,00,000 + 2,00,000 + 5,00,000 + 2,00,000
Capital employed = 22,00,000
Debt = 2,00,000 + 5,00,000 + 2,00,000 = 9,00,000
Debt to Capital employed Ratio $=\frac{\text { Debt }}{\text { Capital employed }}=\frac{9,00,000}{22,00,000}=$ 0.41 : 1

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Question 23 Marks

Under what main heads and sub-heads, will the following items appear in the balance sheet of a company as per Schedule III, Part I of the Companies Act, 2013
i. Mining rights
ii. Encashment of employees earned leave payable on retirement
iii. Vehicles

Answer

Sl.no	Items	Major Headings	Sub-headings
(i)	Mining Rights	Non-current Assets	Fixed Assets (Intangible assets)
(ii)	Encashment of Employees Earned Leave Payable on Retirement	Non-current Liabilities	Long-term Provisions
(iii)	Vehicles	Non-current Assets	Fixed Assets (Tangible assets)

This classification of assets is given as per revised schedule 3 of the company's act, 2013 in order to bring uniformity in classification and to ensure international standards. This classification is given in part 1 of the schedule.

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Accountancy 3 Marks Question

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