From the following particulars pertaining to Assets and Liabilities of a company calculate and interpret:   a. Current Ratio; b. Liquidity Ratio; c. Proprietary Ratio; d. Debt-Equity Ratio; e.Capital Gearing Ratio.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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From the following particulars pertaining to Assets and Liabilities of a company calculate and interpret:  

a. Current Ratio;

b. Liquidity Ratio;

c. Proprietary Ratio;

d. Debt-Equity Ratio;

e.Capital Gearing Ratio.

 

Balance Sheet as on 31st December 2020

Liabilities

Amount (Rs)

Assets

Amount (Rs)

5,000 Equity Shares of Rs 10 each

 

 5,00,000.00

 

Land & Building

     5,00,000.00

8%, 2000 Preference Shares of Rs 100 each

 

 2,00,000.00

 

Plant & Machinery

 

6,00,000.00

9 % Debentures of Rs 100 each

 

 4,00,000.00

 

Sundry Debtors

 

2,00,000.00

Reserves & Surplus

 3,00,000.00

Stock

2,40,000.00

Sundry Creditors

 1,50,000.00

Cash in hand

  55,000.00

Bank Overdraft

   50,000.00

Prepaid Expenses

   5,000.00

       
       

TOTAL

16,00,000.00

TOTAL

16,00,000.00

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