Page 69 - afs12

Accounting Ratios 3.41
7. From the following Balance Sheet of M and S Ltd., compute Debt to Equity Ratio:
BALANCE SHEET as at 31st March, 2024
Particulars Note No. `
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 7,50,000
(b) Reserves and Surplus (1,15,000)
2. Non-Current Liabilities
(a) Long-term Borrowings 7,50,000
( b) Long-term Provisions 1,42,500
3. Current Liabilities
(a) Trade Payables 57,500
(b) Other Current Liabilities 40,000
Total 16,25,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets—Property, Plant and Equipment 6,15,000
(b) Non-current Investments 1,00,000
(c) Other Non-current Assets 1 30,000
2. Current Assets
(a) Inventories 3,75,000
(b) Trade Receivables 1,50,000
(c) Cash and Cash Equivalents 2,60,000
(d) Other Current Assets 2 95,000
Total 16,25,000

Notes to Accounts
Particulars `
1. Other Non-Current Assets
Unamortised Loss on Issue of Debentures 30,000
2. Other Current Assets
Unamortised Share Issue Expenses 75,000
Interest Receivables 10,000
Prepaid Expenses 10,000
95,000
[Ans.: Debt to Equity Ratio = 1.68 : 1.]
8. From the following Balance Sheet, calculate (i) Proprietary Ratio; (ii) Debt to Equity Ratio; and (iii) Total
Assets to Debt Ratio:
BALANCE SHEET OF A LTD. as at 31st March, 2024
Particulars Note No. `
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1,00,000
(b) Reserves and Surplus:
General Reserve 10,000
2. Non-Current Liabilities
Long-term Borrowings 60,000
3. Current Liabilities
(a) Trade Payables 32,000
(b) Short-term Provisions 15,000
Total 2,17,000