| Particulars | Amount (Rs.) |
| 10,000 Equity Shares of Rs. 10 each fully paid | 1,00,000 |
| 5,000; 9% Preference Shares of Rs. 10 each fully paid | 50,000 |
| General Reserve | 45,000 |
| Surplus, i.e., Balance in Statement of Profit and Loss | 20,000 |
| 10% Debentures | 75,000 |
| Current Liabilities | 50,000 |
SOLUTION
Long-Term Debt = Debentures = Rs. 75,000
Shareholder’s Funds = Equity Share Capital + Preference Share Capital + General Reserve + Surplus
= Rs. 1,00,000 + Rs. 50,000 + Rs. 45,000 + Rs. 20,000
= Rs. 2,15,000
Debt-equity ratio = Long-Term Debt / equity
= 75,000 / 2,15,000
= 0.35: 1