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Question : Equity Share Capital Rs.1,00,000

8% Preference Share Capital Rs.40,000

Reserves and Surplus Rs.60,000

Investments Rs.30,000

Current Assets Rs.70,000

Proprietary Ratio is 0.8: 1

Calculate the value of the fixed assets of the company.

Option 1: Rs. 1,50,000

Option 2: Rs. 2,50,000

Option 3: Rs. 2,00,000

Option 4: Rs. 3,00,000


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Rs. 1,50,000


Solution : Answer = Rs 1,50,000

Proprietary Ratio = Proprietor fund / Total Assets

$\Rightarrow \quad .8: 1=1,00,000+40000+60000$ / Total Assets

$=\frac{08}{1}=\frac{3,00,000}{\text { Total Assets }}$

$=$ Total Assets $=\frac{2,00,000}{.8} = 2,50,000$

Total Assets = NCA + CA

2,50,000 = 30,000 + FA + 70,000

FA = 2,50,000 -1,00,000

Now current Assets = 1,50,000
Hence, the correct option is 1.

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