| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
| Revenue from Operations: | Paid-up Share Capital | 17,00,000 | |
| (a) Cash Sales | 40,00,000 | 6% Debentures | 3,00,000 |
| (b) Credit Sales | 20,00,000 | 9% Loan from Bank | 7,00,000 |
| Cost of Goods Sold | 35,00,000 | Debentures Redemption Reserve | 3,00,000 |
| Other Current Assets | 8,00,000 | Closing Inventory | 1,00,000 |
| Current Liabilities | 4,00,000 |
SOLUTION
(i) Long-term Debts = 6% Debentures + 9% Loan from Bank
= 3,00,000 + 7,00,000
= 10,00,000
Equity = Paid-up Share Capital + Debenture Redemption Reserve
= 17,00,000 + 3,00,000
= 20,00,000
Debts-Equity Ratio = Long-term Debts / Equity
= 10,00,000 / 20,00,000
= 0.5: 1
(ii) Current Assets = Other Current Assets + Inventory
= 8,00,000 + 1,00,000
= 9,00,000
Working Capital = Current Assets − Current Liabilities
= 9,00,000 − 4,00,000
= 5,00,000
Net Sales = Cash Sales + Credit sales
= 40,00,000 + 20,00,000
= 60,00,000
Working Capital turnover Ratio = Net Sales / Working Capital
= 60,00,000 / 5,00,000
= 12 Times