[DK Goel] Q. 33,34,35,36 Accounting Ratios Solutions Class 12 CBSE (2026-27)
the solutions of Question number 33, 34, 35, 36 of Accounting Ratios chapter 5 of DK Goel Class 12 CBSE (2026-27)
Q. 33. Assuming that the debt equity ratio is 2 : 1, State giving reasons, which of the following transactions would (i) increase (ii) decrease (iii) not alter the debt-equity ratio:-
(i) Issue of Preference Shares
(ii) Buy-back of its own shares by a Company
(iii) Issue of debentures
(iv) Repayment of Bank Loan
(v) Sale of a non-current asset at par
(vi) Sale of a non-Current asset at profit
(vii) Sale of a non-Current asset at loss
(viii) Purchase of a non-current asset on a credit of 3 months.
(ix) Purchase of a non-current asset on long-term deferred payment basis.
[Ans. (i) Decrease (ii) Increase (iii) Increase (iv) Decrease (v) Not alter (vi) Decrease (vii) Increase (viii) Not alter (ix) Increase.]
Solution:-
Q. 34. The Debt-Equity Ratio of a Company is 1.8 : 1. Which of the following would increase, decrease or not change it?
- Purchase of Motor Vehicle for ₹ 20 Lac of which 60% payment is to be made immediately and remaining 40% after 18 months.
- Sale of Machinery costing ₹ 5,00,000 for ₹ 4,00,000.
- Tax refund of ₹ 40,000 during the year.
- Redemption of 6% Debentures.
- Dividend proposed by directors of the company.
- Dividend declared by shareholders of the company.
[Ans. (1) Increase; (2) Increase; (3) Decrease; (4) Not change; (5) Not Change (6) Incraese.]
Solution:-
Q. 35. Compute Total Assets to Debt Ratio from the following information:
| ₹ | |
| Total Assets | 35,00,000 |
| Total Debts | 32,00,000 |
| Creditors | 2,50,000 |
| Bills Payables | 20,000 |
| Short-term Borrowings | 1,00,000 |
| Outstanding Expneses | 30,000 |
[Ans. Total Assets to Debt Ratio = 1.25 : 1]
Solution:-
Q. 36. Calculate Total Assets to Debt Ratio from the following information:
| ₹ | |
| Shareholder’s Funds | 32,00,000 |
| Reserve and Surplus | 12,00,000 |
| Total Debts | 24,00,000 |
| Trade Payables | 5,60,000 |
| Bank overdraft | 40,000 |
[Ans. 3.11 : 1]
Hint: Reserve and Surplus will be ignored since it is already included in Shareholder’s Funds
Solution:-
