Q. 43 DK Goel Accounting Ratios Solutions Class 12 CBSE (2024-25)
the solutions of Question number 43 of Accounting Ratios chapter 5 of DK Goel Class 12 CBSE (2024-25)
The proprietary ratio of M Ltd. is 0.80 : 1.
state with reasons whether the following transactions will increase, decrease or not change the proprietary ratio:
(i) Obtained a loan from bank ₹ 2,00,000 payable after five years.
(ii) Purchased machinery for cash ₹ 75,000.
(iii) Redeemed 5% redeemable preference shares ₹ 1,00,000.
(iv) Issued equity shares to the Vendors of machinery purchased for ₹ 4,00,000.
[Ans. (i) Decrease, (ii) No Change; (iii) Decrease; (iv) increase.]
Solution:-
