Equity share capital Rs 12 00 000 General Reserve Rs 2 00 000 Money Received against share warrant 1...........

Costing - Phase (I & II) Methods of Costing

Equity share capital: Rs. 12,00,000

General Reserve: Rs.2,00,000

Money Received against share warrant:1,50,000/-

Long Term Borrowings: 4,00,000/-

Other Long-Term Liabilities: 40,000

Long Term Provisions: Rs. 60,000/-

Current Liabilities: Rs. 5,00,000

Fictitious Assets: Rs.50,000/-

Other Assets: Rs. 25,00,000/-

The Debt to Capital Employed Ratio will be:

0.33 times

0.25 Times

0.67 Times

None of the above

Debt – Equity Ratio= Long term Debts/Equity Fund

= 4,00,000 + 40,000 + 60,000/4,00,000 + 40,000 + 60,000 +12,00,000 + 2,00,000 + 1,50,000 – 50,000

=5,00,000/20,00,000= 0.25 times

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