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      Question

      Refer the below details and answer question 23:

        Calculate the Proprietary Ratio
      A 0.50 Correct Answer Incorrect Answer
      B 0.60 Correct Answer Incorrect Answer
      C 0.65 Correct Answer Incorrect Answer
      D 0.55 Correct Answer Incorrect Answer
      E 0.40 Correct Answer Incorrect Answer

      Solution

      Proprietors fund / total assets Proprietor fund = Share capital(Equity & Pref.) + Retained earnings (less loss if any) -Fictitious assets = 2,00,000 + 3,60,000 + 140,000-28,000 = 6,72,000 Total Assets = Fixed Assets + Current Assets-Fictitious assets = 12,60,000 – 28,000 = 12,32,000 = 6,72,000/12,32,000 = 0.55

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