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Vishnu Dilip Vaikkathukkatil

· started a discussion

· 1 Months ago

debt / equity ratio = long term debt / equity
in this problem , total assets is 10 lac
equity and capital is 2 lac
current liability is 5 lac
so long term debt will be 1o lac - (2 lac + 5 lac) = 3 lac
debt / equity ratio = 3 lac / 2 lac = 1.5

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

Option(b) is correct.....we resolved it........

Vishnu Jayan

· commented

· 1 Months ago

which option is right then/

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