Question : Long-term Borrowings 5,00,000 Long-term Provisions 1,00,000 Surplus, i.e., Balance in Statement of Profit and Loss (Dr.) 1,00,000 Equity Share Capital 2,00,000 General Reserve 2,00,000 Debt to equity ratio will be :-
Option 1: 3:1
Option 2: 2:1
Option 3: 4:1
Option 4: None of the above
Correct Answer: 2:1
Solution : Answer = 2:1 Debt to Equity Ratio=$\frac{\text { Debt }}{\text { Equity }}$=$\frac{60,000}{3,00,000}$=2:1. Debt = Long-term borrowings +long-term provision=5,00,000+1,00,000=6,00,000. Shareholder fund = Share capital + Reserve + Profit & loss=2,00,000+2,00,000+(1,00,000)=4,00,000-1,00,000=3,00,000. Hence, the correct option is 2.
Question : Share Capital 12,00,000; Reserves and Surplus 8,00,000; Long-term Borrowings 25,00,000; Long-term Provisions 7 5,00,000; Current Liabilities 10,00,000. Total assets to debt ratio is
Option 1: 3:2
Option 2: 5:2
Option 3: 2.5:1
Question : Puran Store Ltd., an Unlisted Company, is to redeem 5000,8% Debentures of Rs. 100 each on 30th June 2020. It has a balance of Rs. 10,000 in Debentures Redemption Reserve. It decides to set aside the amount to Debentures Redemption Reserve on 31st March 2020 on which date it has
following Reserves and Surplus: Rs. Securities Premium Reserve 25,000 Capital reserve Rs 20,000 General Reserve 30,000; and Surplus, i.e., Balance in Statement of Profit and Loss 30,000 Balance Rs. 40,000 can be set aside to Debentures Redemption Reserve from:
Option 1: Capital Reserve and General Reserve
Option 2: Capital Reserve and Securities Premium Reserve
Option 3: General Reserve and Surplus, i.e., Balance in Statement of Profit and Loss
Option 4: Securities Premium Reserve and Surplus, i.e., Balance in Statement of Profit and Loss
Question : Securities Premium Reserve A/c has a ------------ and is a-----------, to be shown on the equity and liabilities side under the head -----------.
Option 1: Debit balance, capital profit, reserve and surplus
Option 2: Credited, revenue profit, reserve and surplus
Option 3: Credited, capital profits, reserve and surplus
Option 4: Credited, capital profit, shareholders' fund
Question : Fixed Assets (Gross) RS. 10,00,000; Accumulated Depreciation RS. 5,00,000; Non-Current Investments RS. 50,000; Long-term Loans and Advances RS. 2,00,000; Current Assets RS. 2,50,000; Current Liabilities RS. 10,00,000; Long-term Borrowings RS. 3,25,000; Long-term Provisions RS. 2,75,000. Total Assets to Debt Ratio will be
Option 2: 5:3
Option 3: 7:5
Option 4: 4:1
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile