# 12th | Ts grewal 2021-2022 Question 51 to 55 | ch:4 Accounting Ratios

#### Question 51:

Total Debt  `12,00,000; Shareholders' Funds  `2,00,000; Reserves and Surplus  `50,000; Current Assets  `5,00,000; Working Capital  `1,00,000. Calculate Total Assets to Debt Ratio.

 Working Capital = Current Assets-Current Liabilities 1,00,000 = 5,00,000-Current Liabilities Current Liabilities = ` 4,00,000 Debt = Total Debt-Current Liabilities = 12,00,000 - 4,00,000 = ` 8,00,000 Total Assets = Shareholders' Funds+ Total Debt = = 2,00,000+12,00,000  ` 14,00,000 Total Assets to Debt Ratio = Total Assets/Debt = = 14,00,000/8,00,000 1.75:1

#### 1,20,000

Total asset to debt ratio= total asset / debt

= 9,00,000/ 3,00,000

=3:1

Working note:

Wn-1.

Total Assets = Total Liabilities = Equity Share Capital + Long-term Borrowings + Surplus, i.e., Balance in Statement of Profit and Loss + General Reserve + Current Liabilities + Long-term Provisions = 9,00,000

Wn-2

Debt = Long-term Borrowings + Long-term Provisions = 3,00,000.

#### Question 53:

From the following information, calculate Total Assets to Debt Ratio:

 ` ` Fixed Assets (Gross) 6,00,000 Accumulated Depreciation 1,00,000 Non-current Investments 10,000 Long-term Loans and Advances 40,000 Current Assets 2,50,000 Current Liabilities 2,00,000 Long-term Borrowings 3,00,000 Long-term Provisions 1,00,000

 Debts = Long-term Borrowings+Long Term Provisions = = 3,00,000+1,00,000  ` 4,00,000 Total Assets = = = Non-Current Assets + Current Assets       6,00,000 -1,00,000+10,000+2,50,000+40,000  ` 8,00,000 Total Assets to Debt Ratio = Total Assets/Debt = = 8,00,0004,00,000 2:1

#### Question 54:

From the following information, calculate Proprietary Ratio:

 Share Capital `3,00,000 Reserves and Surplus `1,80,000 Non-current Assets `13,20,000 Current Assets ` 6,00,000

Proprietary Ratio=Shareholders' Funds

Total AssetsProprietary Ratio=Share Capital+Reserves and SurplusNon-Current Assets+Current

Assets to Proprietary Ratio =3,00,000+1,80,000/13,20,000+6,00,000=0.25:1 or 25%

#### Question 55:

From the following information, calculate Proprietary Ratio:

 ` Equity Share Capital 3,00,000 Preference Share Capital 1,50,000 Reserves and Surplus 75,000 Debentures 1,80,000 Trade Payables 45,000 7,50,000 Fixed Assets 3,75,000 Short-term Investments 2,25,000 Other Current Assets 1,50,000 7,50,000