Question
From the following, calculate the Debt-Equity Ratio:
✓
Answer
Debt-Equity Ratio $=\frac{\text{Debt}}{\text{Equity}}= \frac{\text{Long Term Debts}}{\text{Shareholder's Funds}}$ Shareholder's Funds = Equity Share Capital + General Reserve + Profit & Loss Balance.
= ₹ 1,00,000 + ₹ 45,000 + ₹ 30,000
= ₹ 1,75,000
$=\frac{₹\ 75,000 }{₹\ 1,75,000}=0.43:1$
= ₹ 1,00,000 + ₹ 45,000 + ₹ 30,000
= ₹ 1,75,000
$=\frac{₹\ 75,000 }{₹\ 1,75,000}=0.43:1$
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