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Capital Employed  Rs.8,00,000; Shareholders’ Funds Rs. 2,00,000. Calculate Debt to Equity Ratio.

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

Shareholders’ Funds = 2,00,000
Capital Employed = 8,00,000

Long- Term Debts = Capital Employed − Shareholders’ Funds
= 8,00,000 − 2,00,000
= 6,00,000

Debt equity ratio = Long-term Debt  / equity
= 6,00,000 / 2,00,000
= 3: 1



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Previous PostTotal Assets Rs. 12,50,000; Total Debts Rs. 10,00,000; Current Liabilities Rs. 5,00,000. Calculate Debt to Equity Ratio.
Next PostBalance Sheet had the following amounts as at 31st March, 2019:

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