ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    Calculate the Debt Equity ratio of the

    company? Read the following information to answer the below questions: ┬а Net Sales = 40,00,000 (20 % GP Element) out of which 40% is on credit. Opening Inventories were 60 % of closing inventories. Opening Receivables are 120,000.┬а ┬а
    A 0.45 Correct Answer Incorrect Answer
    B 0.43 Correct Answer Incorrect Answer
    C 0.40 Correct Answer Incorrect Answer
    D 0.55 Correct Answer Incorrect Answer

    Solution

    D/E ratio= Debt/Shareholders fund D/E ratio = 6,00,000 / 13,84,000 =0.43 Debt= 2,50,000(Loan from Bank) +3,50,000 (Debentures) = 6,00,000 Equity Shareholders fund : Equity Share capital+ Preference share capital + General Reserve + P & LтАУ Preliminary Expenses -Losses not written off =8,00,000 + 4,00,000 + 1,50,000 + 76,000 -15,000 -27,000 =13,84,000

    Practice Next
    More Accounts Questions

    Relevant for Exams:

    ask-question