Discussions
Ashish Bajaj

· started a discussion

· 1 Months ago

is it outsiders debt only or the total debt of short and long term because it varies from author to author. which one to opt out???????

Question:
In the balance sheet amount of total assets is Rs.10 lac, current liabilities Rs.5 lac & capital & reserves are Rs.2 lac .What is the debt equity ratio? 
Options:
A) 1:1 
B) 1.5:1 
C) 2:1
D) none of the above.
E)

Can't be determined

Solution:

Ans (b)

Knowledge Expert

· commented

· 1 Months ago

Debt - Equity Ratio = Total Liabilities / Shareholders' Equity

NILAY

· commented

· 1 Months ago

hey
we dont know the debt then how can we determine debt to equity ratio.

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