Q. 32 DK Goel Accounting Ratios Solutions Class 12 CBSE (2024-25)

the solutions of Question number 32 of Accounting Ratios chapter 5 of DK Goel Class 12 CBSE (2024-25)

The Debt-Equity Ratio of a Company is 1.8 : 1. Which of the following would increase, decrease or not change it?

1. Purchase of Motor Vehicle for ₹ 20 Lac of which 60% payment is to be made immediately and remaining 40% after 18 months.
2. Sale of Machinery costing ₹ 5,00,000 for ₹ 4,00,000.
3. Tax refund of ₹ 40,000 during the year.
4. Redemption of 6% Debentures.
5. Dividend proposed by directors of the company.
6. Dividend declared by shareholders of the company.

[Ans. (1) Increase; (2) Increase; (3) Decrease; (4) Not change; (5) Not Change (6) Incraese.]

Solution:-