Question
46:
Shareholders' Funds ` 1,60,000; Total Debts ` 3,60,000; Current
Liabilities ` 40,000.
Calculate Total Assets to Debt Ratio.
Answer:
Total Debts = 3,60,000
Shareholders’ Funds = 1,60,000
Current Liabilities = 40,000
Total Assets = Total Debts + Shareholders’ Funds
= 3,60,000 + 1,60,000 = 5,20,000
Long-term Debts = Total Debt − Current Liabilities
= 3,60,000 − 40,000 = 3,20,000
Total assets to Debt ratio= Total
assets / Debt =5,20,000/3,20,000=13:8 or 1.625:1
Question
47:
Total Debt ` 60,00,000; Shareholders' Funds ` 10,00,000; Reserves and Surplus ` 2,50,000; Current Assets ` 25,00,000; Working Capital ` 5,00,000. Calculate Total Assets to Debt Ratio.
Answer:
Total Assets to Debt Ratio = Total Assets/Long Term Debt
Working Capital = Current Assets – Current Liabilities
5,00,000 =
25,00,000 – Current Liabilities
Current Liabilities = ` 20,00,000
Long Term Debts = Total Debt – Current Liabilities
= 60,00,000 – 20,00,000
= ` 40,00,000
Total Assets = Total Liabilities = Total Debt + Shareholders’ Funds
= 60,00,000 + 10,00,000
= ` 70,00,000
Total Assets to Debt Ratio = 70,00,000/40,00,000 = 7 : 4 or 1.75 : 1
Question
48:
Total Debt `15,00,000; Current Liabilities `5,00,000; Capital Employed `15,00,000. Calculate Total Assets to Debt Ratio.
Answer:
Total Assets to Debt Ratio = Total Assets/Long Term Debt
Capital Employed = Total Assets – Current Liabilities
15,00,000 =
Total Assets – 5,00,000
Total Assets = ` 20,00,000
Long Term Debt = Total Debt – Current Liabilities
= 15,00,000 – 5,00,000
= ` 10,00,000
Total Assets to Debt Ratio = 20,00,000/10,00,000 = 2 : 1
Question
49:
Calculate Total Assets to Debt Ratio from the following information:
|
|
|
|
|
|
|
|
Particulars |
` |
Particulars |
` |
||
|
Total
Assets |
15,00,000 |
Bills
Payable |
60,000 |
||
|
Total
Debts |
12,00,000 |
Bank
Overdraft |
50,000 |
||
|
Creditors |
90,000 |
Outstanding
Expenses |
20,000 |
||
Answer:
Total
Assets = ` 15,00,000
Current Liabilities = Creditors + Bills Payable + Bank Overdraft + Outstanding
Expenses
= ` 90,000 + ` 60,000 + ` 50,000 + ` 20,000 = ` 2,20,000
Long-Term Debt = Total Debt – Current Liabilities
= ` 12,00,000 – ` 2,20,000 = ` 9,80,000
Total assets to Debt ratio=
Total assets / Long-Term Debt =15,00,000/9,80,000=1.53:1
Question
50:
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.
Answer:
|
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 |
Class : 12th | Ts Grewal solution 2022-2023
Volume 3 | Chapter 4: Accounting Ratio
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