State with reason, whether the Proprietary Ratio will improve, decline or will not change because of the following transactions if Proprietary Ratio is 0.8: 1: (i) Obtained a loan of Rs. 5,00,000 from State Bank of India payable after five years. (ii) Purchased machinery of Rs. 2,00,000 by cheque. (iii) Redeemed 7% Redeemable Preference Shares Rs. 3,00,000. (iv) Issued equity shares to the vendor of building purchased for Rs. 7,00,000. (v) Redeemed 10% redeemable debentures of Rs. 6,00,000.

State with reason, whether the Proprietary Ratio will improve, decline or will not change because of the following transactions if Proprietary Ratio is 0.8: 1: (i) Obtained a loan of Rs. 5,00,000 from State Bank of India payable after five years. (ii) Purchased machinery of Rs. 2,00,000 by cheque. (iii) Redeemed 7% Redeemable Preference Shares Rs. 3,00,000. (iv) Issued equity shares to the vendor of building purchased for Rs. 7,00,000. (v) Redeemed 10% redeemable debentures of Rs. 6,00,000.

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