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    Question

    Calculate Debt ‐

    Equity  Direction(14 to 16):- Refer the following summarized Balance Sheet & P&L of AB Ltd. as on 31 ‐ 3 ‐ 2022.   Summarized Profit and Loss Account is as under for the year ending on 31 ‐ 3 ‐ 22:                                                                                         Rs . Sales (25% Cash sales)                                              80,00,000 Less: Cost of goods sold                                            56,00,000        Gross Profit                                                                24,00,000        Net profit (Before interest and tax 50%)                     9,00,000 Calculate the following ratios:
    A 0.20 Correct Answer Incorrect Answer
    B 0.34 Correct Answer Incorrect Answer
    C 0.24 Correct Answer Incorrect Answer
    D 0.40 Correct Answer Incorrect Answer
    E 0.25 Correct Answer Incorrect Answer

    Solution

    Long Term Debt / Shareholders Fund = 5,00,000/ 20,80,000 = 0.24 LTL = Debentures + long term loans SHF = Eq. Sh. Cap. + Reserves & Surplus + Preference Sh.Cap. – Fictitious Assets LTL = 5,00,000 SHF = 10,00,000 + 7,00,000 + 4,00,000 ‐ 20,000 = 20,80,000

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