Question : Equity share capital Rs.15,00,000. Reserve and Surplus Rs.7,50,000. Total Assets Rs.45,00,000. Proprietary Ratio?
Option 1: 35%
Option 2: 50%
Option 3: 66.67%
Option 4: 75%
Correct Answer: 50%
Solution : By dividing owners' funds by total assets, the proprietary ratio is calculated. According to the balance sheet, the proprietors' funds consist of share capital, reserves, and surpluses. According to the balance sheet, total assets consist of both long-term and short-term assets, including goodwill and other items.
So the proprietary ratio is as follows :
Total Shareholder Fund = Equity Share Capital + Reserve & Surplus = Rs.15,00,000 + Rs.75,00,00 = Rs.22,50,000.
Total Assets = Rs.45,00,000.
Proprietary ratio = Shareholder Fund / Total assets
= Rs.22,50,000/Rs.45,00,000
= 50%
Hence, the Correct answer is option 2.
Question : Equity Share Capital Rs.35,00,000; Reserve Rs.15,00,000; Debentures Rs.10,00,000; Current Liabilities Rs.8,00,000. What will be debt-equity ratio?
Option 1: 1:2
Option 2: 1:3
Option 3: 1:5
Option 4: 1:4
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
Question : Total Debts Rs. 15,00,000; Current Liabilities Rs. 5,00,000; Capital Employed Rs. 15,00,000. Calculate Total Assets to Debt Ratio.
Option 1: 3:2
Option 2: 2.5:1
Option 3: 2:1
Option 4: None of the above
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