Q. 51 DK Goel Accounting Ratios Solutions Class 12 CBSE (2024-25)
the solutions of Question number 51 of Accounting Ratios chapter 5 of DK Goel Class 12 CBSE (2024-25)
Debt to Capital Employed Ratio is 0.25 : 1. State whether the following transactions will improve, decline or will not change the Debt to Capital Employed Ratio. Also give reasons for the same.
(i) Purchase of Plant & Machinery on a credit of 6 months.
(ii) Sale of Land of Book Value of ₹ 20,00,000 for ₹ 30,00,000.
(iii) Repayment of half of 10% Bank Loan.
(iv) Issue of ₹ 8,00,000, 7% Debentures at a discount of 6%, redeemable at 4% premium.
(v) Issue of Equity Shares of ₹ 10,00,000 to Vendors for purchase of machinery.
(vi) Dividend proposed by directors of the company for the current year.
(vii) Declaration of dividend by the shareholders of the company.
(viii) Redemption of Debentures maturing during the year.
[Ans. (i) Not Change, (ii) Decline, (iii) Decline, (iv) Improve, (v) Decline, (vi) Not Change, (vii) Improve, (viii) Not Change
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