From the following information, calculate Proprietary Ratio:

ParticularsAmount
(Rs.)
Equity Share Capital3,00,000
Preference Share Capital1,50,000
Reserves and Surplus75,000
Debentures1,80,000
Trade Payables45,000
 Total7,50,000
Fixed Assets3,75,000
Short-term Investments2,25,000
Other Current Assets1,50,000
 Total7,50,000

SOLUTION

Total Assets = Fixed Assets + Current Assets + Investments
= 3,75,000 + 1,50,000 + 2,25,000
= 7,50,000

Shareholders’ Funds = Equity Share Capital + Preference Share Capital + Reserves and  Surplus
= 3,00,000 + 1,50,000 + 75,000
= 5,25,000

Proprietary Ratio = Shareholder’s Fund / Total Assets
= 525000 / 750000
= 0.70: 1

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