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Accounting Ratios 3.47
15. Following is the Balance Sheet of Star Ltd. as at 31st March, 2024. You are required to calculate Debt
to Equity Ratio for the two years.
BALANCE SHEET as at 31st March, 2024
Particulars Note 31st March, 31st March,
No. 2024 (`) 2023 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 7,50,000 7,50,000
(b) Reserves and Surplus 2,50,000 1,50,000
2. Non-Current Liabilities
Long-term Borrowings 10,00,000 6,00,000
3. Current Liabilities
(a) Short-term Borrowings 1,50,000 1,00,000
(b) Trade Payables 50,000 1,00,000
Total 22,00,000 17,00,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 8,00,000 9,00,000
2. Current Assets
(a) Inventories 4,50,000 3,00,000
(b) Trade Receivables 8,00,000 4,00,000
(c) Cash and Cash Equivalents 1,50,000 1,00,000
Total 22,00,000 17,00,000
[Ans.: Debt to Equity Ratio: 2024—1 : 1; 2023—0.67 : 1.]
16. Following is the Balance Sheet of Colours Ltd. as at 31st March, 2024. You are required to calculate
Debt to Equity Ratio for the two years.
BALANCE SHEET as at 31st March, 2024
Particulars Note 31st March, 31st March,
No. 2024 (`) 2023 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 7,50,000 7,50,000
(b) Reserves and Surplus 1,50,000 2,50,000
2. Non-Current Liabilities
(a) Long-term Borrowings 16,00,000 10,00,000
(b) Long-term Provisions 2,00,000 ...
3. Current Liabilities
(a) Trade Payables 3,50,000 1,00,000
(b) Short-term Provisions 1,50,000 50,000
Total 32,00,000 21,50,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 9,00,000 10,50,000
2. Current Assets
(a) Inventories 8,00,000 4,50,000
(b) Trade Receivables 13,50,000 5,00,000
(c) Cash and Cash Equivalents 1,50,000 1,50,000
Total 32,00,000 21,50,000
[Ans.: Debt to Equity Ratio: 2024—2 : 1; 2023—1 : 1.]