Download App

Accounting Ratios — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyAccounting Ratios3 Marks
Question
Shareholders' Funds ₹ 1,60,000; Total Debts ₹ 3,60,000; Current Liabilities ₹ 40,000. Calculate Total Assets to Debt Ratio.
Hints:
  1. Long-term Debts = Total Debts - Current Liabilities.
  2. Total Assets = Long-term Debts + Shareholders' Funds + Current Liabilities.
✓

Answer

Total Debts = 3,60,000
Shareholders’ Funds = 1,60,000
Current Liabilities = 40,000
Total Assets = Total Debts + Shareholders’ Funds
= 3,60,000 + 1,60,000 = 5,20,000
Long-term Debts = Total Debt - Current Liabilities
= 3,60,000 - 40,000 = 3,20,000
$\text{Total Assets Debt Ratio}=\frac{\text{Total Assets}}{\text{Long-term Debt}}$
$=\frac{5,20,000}{3,20,000}=13:8\text{ or }1.625:1$

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Accounting Ratios→Accounting Ratios — all question types→Accountancy STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

2,000 Equity Shares of ₹ 10 each were issued to Limited from whom assets of ₹ 25,000 were acquired. Pass Journal entry.
→
What is vertical analysis of financial statements?
→
Deepak Ltd purchased furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furniture Mart by accepting a Bill of Exchanged and for the balance the company issued 9% Debenture of ​₹ 100 each at a premium of 10% in favour of M/s. Furniture Mart.
Pass Journal entries in the books of Deepak Ltd.
→
Name any two items that are shown under the head 'other current liabilities and any two items that are shown under the head 'other current assets' in the balance sheet of a company as per Schedule III of the Companies Act, 2013.
→
From the following information, calculate Change in inventory of work-in-Progress:
Opening and Closing Work-in-Progress ₹ 1,50,000 and ₹ 1,45,000 respectively.
→
Current Liabilities of a company were ₹ 1,75,000 and its Current Ratio was 2 : 1. It paid ₹ 30,000 to a Creditor. Calculate Current Ratio after payment.
→
X Ltd. purchased assets of ₹ 8,00,000 and liabilities of ₹ 1,00,000 from Y Ltd. on 1.4.2018. ₹ 2,00,000 were paid immediately and the balance was paid by issue of ₹ 4,75,000, 10% debentures in X Ltd. Give journal entries in the books of X Ltd.
→
Calculate Total Assets to Debt Ratio from the following information:
Particulars
₹
Particulars
₹
Total Assets.
15,00,000
Bills Payable.
60,000
Total Debts.
12,00,000
Bank Overdraft.
50,000
Creditors.
90,000
Outstanding Expenses.
20,000
→
Quick Ratio 1.5 Current Assets ₹ 1,00,000 Current Liabilities ₹ 40,000. Calculate the value of Inventory.
→
From the given notes to accounts and cash flow statement of Water Purifier Ltd. complete the missing figures:
Notes to Accounts:

Additional Information:
  1. Depreciation charged on plant & Machinery for the year 2017-18 was ₹ 1,75,000. During the year 2017-18, Plant and Machinery of ₹ 7,25,000 was purchased.
  2. Interest on Mortgage Loan paid during the year amounted to ₹ 35,000.
  3. Interim Divident paid during the year ₹ 44,000.
→