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 Net Increase / Decrease in cash and cash equivalents + Cash and Cash equivalents at the beginning of the period = ………………………. October 4, 2022 What do you mean by Convertible Preference Shares? September 28, 2022 State with reason whether the following transactions will increase, decrease or not change the ‘Return on Investment’ Ratio: (i) Purchase of machinery worth Rs. 10,00,000 by issue of equity shares. (ii) Charging depreciation of Rs. 25,000 on machinery. (iii) Redemption of debentures by cheque Rs. 2,00,000. (iv) Conversion of 9% Debentures of Rs. 1,00,000 into equity shares. August 17, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Net Increase / Decrease in cash and cash equivalents + Cash and Cash equivalents at the beginning of the period = ………………………. October 4, 2022
State with reason whether the following transactions will increase, decrease or not change the ‘Return on Investment’ Ratio: (i) Purchase of machinery worth Rs. 10,00,000 by issue of equity shares. (ii) Charging depreciation of Rs. 25,000 on machinery. (iii) Redemption of debentures by cheque Rs. 2,00,000. (iv) Conversion of 9% Debentures of Rs. 1,00,000 into equity shares. August 17, 2022