From the following Balance Sheet of ABC Ltd. as at 31st March, 2019, C

From the following Balance Sheet of ABC Ltd. as at 31st March, 2019, Calculate Debt to Equity Ratio: Particulars ₹ I. EQUITY AND LIABILITIES 1. Shareholder's Funds (a) Share Capital: (i) Equity Share Capital 5,00,000 (ii) 10% Preference Share Capital 5,00,000 10,00,000 (b) Reserves and Surplus 2,40,000 2. Non-Current Liabilities Long-term Borrowings (Debentures) 2,50,000 3. Current Liabilities : (a) Trade Payables 4,30,000 (b) Other Current Liabilities 20,000 (c) Short-term Provisions: Provision for Tax 3,00,000 Total 22,40,000 II. ASSETS 1. Non-Current Assets Fixed Assets: (i) Tangible Assets 6,40,000 (ii) Intangible Assets 1,00,000 2. Current Assets (a) Inventories 7,50,000 (b) Trade Receivables 6,40,000 (c) Cash and Cash Equivalents 1,10,000 Total 22,40,000

Answer»

From the following Balance Sheet of ABC Ltd. as at 31st March, 2019, Calculate Debt to Equity Ratio:

Particulars		₹
I. EQUITY AND LIABILITIES
1. Shareholder's Funds
(a) Share Capital:
(i) Equity Share Capital	5,00,000
(ii) 10% Preference Share Capital	5,00,000	10,00,000
(b) Reserves and Surplus		2,40,000

2. Non-Current Liabilities
Long-term Borrowings (Debentures)		2,50,000

3. Current Liabilities :
(a) Trade Payables		4,30,000
(b) Other Current Liabilities		20,000
(c) Short-term Provisions: Provision for Tax		3,00,000
Total		22,40,000
II. ASSETS
1. Non-Current Assets
Fixed Assets:
(i) Tangible Assets		6,40,000
(ii) Intangible Assets		1,00,000

2. Current Assets
(a) Inventories		7,50,000
(b) Trade Receivables		6,40,000
(c) Cash and Cash Equivalents		1,10,000
Total		22,40,000