Question
Calculate the Proprietary Ratio of the company?
Refer to the following information to answer the next 4 questions (Q11 to Q14)Solution
Shareholders fund/Total assets = 3,05,000/5,10,000 = 0.598 or 0.60 Shareholders fund: Equity + Preference + General Reserve – Preliminary Expenses 2,00,000 + 1,00,000 + 20,000 – 15,000 = 3,05,000 Total assets: Plant & Machinery + Land + Stock +Debtors + Cash 1,00,000 + 1,05,000 + 41,000 + 2,50,000 + 14,000 = 5,10,000
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