1.

From the following information calculate debt equity ratio. Balance sheet (Extract) as on 31st March, 2019:

Answer»

Debt equity ratio - (Long term debt)/(Shareholders funds)

Debenture = 6,00,000 

Shareholders’ funds = Equity share capital + Reserves and surplus 

= 6,00,000 + 2,00,000

= 8,00,000 

Debt Equity ratio = 6,00,000/8,00,000

= 0.75 : 1



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