| Particulars | Amount (Rs.) |
| I. EQUITY AND LIABILITIES | |
| 1. Shareholder’s Funds | |
| (a) Share Capital: | |
| (i) Equity Share Capital – 5,00,000 | |
| (ii) 10% Preference Share Capital – 5,00,000 | 10,00,000 |
| (b) Reserves and Surplus – | 2,40,000 |
| 2. Non-Current Liabilities | |
| Long-term Borrowings (Debentures) | 2,50,000 |
| 3. Current Liabilities : | |
| (a) Trade Payables | 4,30,000 |
| (b) Other Current Liabilities | 20,000 |
| (c) Short-term Provisions: Provision for Tax | 3,00,000 |
| Total | 22,40,000 |
| II. ASSETS | |
| 1. Non-Current Assets | |
| Fixed Assets: | |
| (i) Tangible Assets | 6,40,000 |
| (ii) Intangible Assets | 1,00,000 |
| 2. Current Assets | |
| (a) Inventories | 7,50,000 |
| (b) Trade Receivables | 6,40,000 |
| (c) Cash and Cash Equivalents | 1,10,000 |
| Total | 22,40,000 |
SOLUTION
Long-term Debt = Debentures = 2,50,000
Equity = Equity Share Capital + 10% Preference Share Capital + Reserves and Surplus
= 5,00,000 + 5,00,000 + 2,40,000
= 12,40,000
Debt equity ratio = Long-term Debt / equity
= 2,50,000 / 12,40,000
= 0.2: 1