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M.352 An Aid to Accountancy—CBSE XII

Debt
Debt to Equity Ratio =
Equity (Shareholders’ Funds)
` 10,00,000
= = 0.143 : 1.
` 70,00,000
Debt = 10% Debentures = ` 10,00,000
Equity or Shareholders’ Funds = Capital Employed – Debt
= ` 80,00,000 – ` 10,00,000 = ` 70,00,000.

Or
Net Profit before Interest, Tax and Dividend
(a) Return on Investment = ¥ 100
Capital Employed
` 14,50,000
= ¥ 100 = 16.48%.
` 88,00,000
Net Profit before Interest, Tax and Dividend = ` 14,50,000
Capital Employed = Fixed Assets + Current Assets – Current Liabilities

= ` 75,00,000 + ` 40,00,000 – ` 27,00,000 = ` 88,00,000.
Total Assets
(b) Total Assets to Debt Ratio =
Long-term Debts

` 1,15,00,000
= = 1.44 : 1.
` 80,00,000
Total Assets = Fixed Assets + Current Assets
= ` 75,00,000 + ` 40,00,000 = ` 1,15,00,000.
Long-term Debt = 12% Debentures = ` 80,00,000.

22. COMPARATIVE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March, 2017 and 2018
Particulars Note 31st March, 31st March, Absolute Change Percentage
No. 2017 2018 (Increase/ Change (Increase/
Decrease) Decrease)
` ` ` %
(A) (B) (C = B – A) ( D = C ¥100 )
A
I. Revenue from Operations 24,00,000 36,00,000 12,00,000 50.00
II. Other Income (WN) 4,80,000 4,32,000 (48,000) (10.00)
III. Total Revenue (I + II) 28,80,000 40,32,000 11,52,000 40.00
IV. Expenses (WN) 14,40,000 25,20,000 10,80,000 75.00
V. Profit before Tax (III – IV) 14,40,000 15,12,000 72,000 5.00
VI. Less: Tax 4,32,000 4,53,600 21,600 5.00
VII. Profit after Tax (V – VI) 10,08,000 10,58,400 50,400 5.00