LIVE Course for free

Rated by 1 million+ students
Get app now
0 votes
in Accounts by (64.6k points)

From the following, calculate 

(a) Debt-Equity Ratio 

(b) Total Assets to Debt Ratio 

(c) Proprietary Ratio.

1 Answer

+1 vote
by (59.7k points)
selected by
Best answer

(a) Debt Equity Ratio = Debt/Equity

Equity / Share holders Funds = Equity Share Capital + Preference Share Capital + General Reserve +Accumulated Profit – Preliminary Expenses Written off 

= 75,000 + 25,000 + 50,000 + 30,000 – 5,000=1,75,000

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.