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proprietary and total assets/debts ratio

Total questions: 8

Worksheet time: 7mins

Name
Class
Date
1.

Calculate Total Assets to Debt Ratio from the following information. Long-term Debts ₹ 4,00,000; Total Assets ₹ 7,70,000.

a)

1.5:

b)

1.925 : 1

c)

1.85:1

d)

2:1

2.

Shareholder’s Funds ₹ 1,60,000; Total Debts ₹ 3,60,000; Current Liabilities ₹ 40,000. Calculate Total Assets to Debt Ratio.

a)

1.30:1

b)

1.52:1

c)

1.80:1

d)

1.625 : 1

3.

Total Debt ₹ 60,00,000; Shareholder’s Funds ₹ 10,00,000; Reserves and Surplus ₹ 2,50,000; Current Assets ₹ 25,00,000; Working Capital ₹ 5,00,000. Calculate Total Assets to Debt Ratio.

a)

1.75 : 1

b)

1.50:1

c)

1.30:1

d)

2:1

4.

Total Debt ₹ 15,00,000; Current Liabilities ₹ 5,00,000; Capital Employed ₹ 15,00,000. Calculate Total Assets to Debt Ratio.

a)

1.75:1

b)

1.5:1

c)

1.80:1

d)

2 : 1

5.

Total Debt ₹ 12,00,000; Shareholder’s Funds ₹ 2,00,000; Reserves and Surplus ₹ 50,000; Current Assets ₹ 5,00,000; Working Capital ₹ 1,00,000; Calculate Total Assets to Debt Ratio.


a)

1.80:1

b)

1.75 : 1

c)

1.35:1

d)

1.60:1

6.

Calculate Proprietary Ratio, if Total Assets to Debt Ratio is 2 : 1. Debt is ₹ 5,00,000. Equity Shares Capital is 0.5 times of debt. Preference Shares Capital is 25% of equity share capital. Net Profit before tax is ₹ 10,00,000 and rate of tax is 40%.

a)

0.85:1

b)

0.912 : 1

c)

2:1

d)

4:1

7.

State, with reason, whether the Proprietary Ratio will improve, decline or will not change because of the following transactions if Proprietary Ratio is 0.8 : 1

(i) Obtained a loan of ₹ 5,00,000 from State Bank of India payable after five years.

a)

improve

b)

decline

c)

will not change

8.

State, with reason, whether the Proprietary Ratio will improve, decline or will not change because of the following transactions if Proprietary Ratio is 0.8 : 1

(ii) Purchased machinery of ₹ 2,00,000 by cheque.

a)

Improve

b)

Decline

c)

No Change