What will be impact of ‘purchase of a fixed asset on a credit of 3 months’ on a debt equity ratio of 1: 1? Post category:Accountancy Reading time:1 mins read SOLUTION There will be no effect on debt-equity ratio because the long-term loans as well as the Shareholder’s Funds remain unchanged. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat will be the impact of ‘issuing Rs. 5,00,000 equity shares to vendors of machinery’ on the Debt-Equity Ratio of 2: 1? (C.B.S.E. 2020. Mumbai, Chennai) Next PostThe Debt- Equitv Ratio of A’ Ltd. is 1: 2. What is the effect of conversion of debentures into preference shares on this ratio? You Might Also Like Ratio of Current Assets (Rs. 3,00,000) to Current Liabilities (Rs. 2,00,000) is 1.5: 1. The accountant of the firm interested is maintain in a Current Ratio of 2: 1 by paying off a part of the Current Liabilities. Compute amount of the Current Liabilities that should be paid so that the Current Ratio at the level of 2: 1 may be maintained. August 12, 2022 What do you mean by Convertible Preference Shares? September 28, 2022 What is meant by “Hidden Goodwill”? (C.B.S.E. 2017, Comptt.) September 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Ratio of Current Assets (Rs. 3,00,000) to Current Liabilities (Rs. 2,00,000) is 1.5: 1. The accountant of the firm interested is maintain in a Current Ratio of 2: 1 by paying off a part of the Current Liabilities. Compute amount of the Current Liabilities that should be paid so that the Current Ratio at the level of 2: 1 may be maintained. August 12, 2022