Q. 48 DK Goel Accounting Ratios Solutions Class 12 CBSE (2024-25)

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the solutions of Question number 48 of Accounting Ratios chapter 5 of DK Goel Class 12 CBSE (2024-25)

Following information has been obtained from the books of Queens Ltd. as at 31st March, 2023:

8% Debentures (1/4th redeemable on 31st Dec. 2023)8,00,000
7% Debentures6,50,000
Long-term Provisions2,50,000
Short-term Provisions50,000
Share Capital9,60,000
Profit and Loss Balance (Dr.)(40,000)
Debenture Redemption Reserve80,000

You are required to calculate Debt to Capital Employed Ratio.

[Ans. Debt to Capital Employed Ratio = 0.6 : 1]

Solution:-

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