Calculate Debt to Equity Ratio from the following information:

Particulars Amount
(Rs.)
Particulars Amount
(Rs.)
Fixed Assets (Gross)8,40,000Current Assets3,50,000
Accumulated Depreciation1,40,000Current Liabilities2,80,000
Non-current Investments14,00010% Long-term Borrowings4,20,000
Long-term Loans and Advances56,000Long-term Provisions1,40,000

SOLUTION

DebtLong Term Borrowings + Long Term Provisions        
 4,20,000 + 1,40,000 = Rs. 5,60,000
  
EquityTotal Assets - Total Debts           
 (8,40,000 -1,40,000+14,000+56,000+3,50,000) - (4,20,000 -1,40,000 -2,80,000)
= Rs. 2,80,000
Debt to Equity RatioDebt / Equity                                  
 5,60,000 / 2,80,000 = 2: 1



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