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

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

Team Careers360 · Accepted Answer

Correct Answer: 1:5

Solution : Equity = Equity Share Capital + General Reserve + Accumulated Profits.
Equity = 35,00,000+15,00,000 = 50,00,000
Debt = 10,00,000
Debt-equity ratio = Debt/Equity
Debt-equity ratio = 10,00,000/50,00,000=1:5
Hence 3 is the correct answer.

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

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: 1:2Option 2: 1:3Option 3: 1:5Option 4: 1:4

Related Questions

Question : Equity share Capital Rs.20,00,000; Reserves Rs.5,00,000; Debenture Rs.10,00,000; Current liabilities Rs.8,00,000. Debt equity ratio will be -

Question : Equity Share Capital Rs.4,00,000; General Reserve Rs.2,40,000;Debentures Rs.3,20,000; Current Liabilities Rs.80,000 On the above information find out the Debt-Equity Ratio.

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.

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.

Question : Net Profit after Tax: Rs.6,50,000; 12.5% Convertible Debentures: Rs.8,00,000; Income Tax: 50%; Fixed Assets at cost: Rs.24,60,000; Depreciation Reserve: Rs.4,60,000; Current Assets: Rs.15,00,000; Current Liabilities: Rs.7,00,000. Return on capital employed will be

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

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.4,00,000; General Reserve Rs.2,40,000;Debentures Rs.3,20,000; Current Liabilities Rs.80,000
On the above information find out the Debt-Equity Ratio.