Equity Share Capital Rs 20 00 000 Reserve 5 00 000 Debentures Rs 10 00 000 Current Liabilities Rs 8 ...........

General Accounting Principles Ratio analysis

Equity Share Capital Rs 20,00,000; Reserve 5,00,000; Debentures Rs 10,00,000; Current Liabilities Rs 8,00,000. Debt-equity ratio will be :

.4 :1

.32 : 1

.72 : 1

.5 : 1

Equity Share Capital Rs 20,00,000; Reserve 5,00,000; Debentures Rs 10,00,000; Current Liabilities Rs 8,00,000

DEBT TO EQUITY RATIO= DEBT/ EQYUITY (SHAREHOLDER'S FUND)

= Rs.10,00,000/Rs.25,00,000

=0. 4 : 1 (ANSWER)

DEBT= DEBENTURES(Rs 10,00,000)

EQUITY=(Equity Share Capital )Rs 20,00,000 + (Reserve) 5,00,000 =Rs.25,00,000

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