Q. 43 Solution of Accounting Ratios Chapter TS Grewal Book Class 12 2021-22
Are you looking for the solution of Question number 43 of the Accounting Ratios of TS Grewal Book 2021-22 Edition for the 2021-22 session?
Question number 43 of the Accounting Ratios chapter is a practical one.
Solution of Question Number 43 of Accounting Ratios Chapter of TS Grewal Book 2021-22 Class 12
Question 43.
The debt to Equity Ratio of a company is 0.5:1. Which of the following suggestions would increase, decrease or not change it.
- Issue of Equity Shares
- Cash Received from Debtors
- Redemption of debentures
- Purchased goods on credit
Answer:-
| S.N | Problem | Result |
| 1. | Issue of Equity Share | Issue of equity shares would increase equity. due to increased denominator overall debt to equity ratio would decrease. |
| 2. | Cash Received from Debtors | a current asset is converted into another current asset. No change in debt to equity ratio as given transactions does not affect debt and equity. |
| 3. | Redemption of Debentures | Redemption of debentures reduces debt. due to decreased numerator. overall debt to equity ratio would decrease. |
| 4. | Purchased goods on credit | current assest and current liabilities are increased. no affect on debt and equity. No change on debt to equity ratio. |
