Question :
On the basis of following information received from a firm, its proprietary ratio will be -
|
Particulars |
Amount |
|
Fixed assets |
330000 |
|
Current assets |
190000 |
|
Preliminary Exp. |
30000 |
|
Equity share capital |
244000 |
|
Prefrence share capital |
170000 |
|
Reserve Fund |
58000 |
Option 1: 80%
Option 2: 85%
Option 3: 70%
Option 4: 90%
Correct Answer: 85%
Solution : The shareholder's equity is divided by the total assets of the company to arrive at the proprietary ratio, which is expressed as a percentage.
Hence the ratio is -
= (Equity share capital + Preference share capital + Reserve Fund - Preliminary Exp.)/(Fixed assets + Current assets)
= Rs.(244000 + 170000 + 58000 - 30000)/Rs.(330000+190000)
= Rs.442000/Rs.520000
= 85%
Hence the correct answer is option 2.
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