Q. 57 Solution of Accounting Ratios Chapter TS Grewal Book Class 12 2021-22

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Are you looking for the solution of Question number 57 of the Accounting Ratios of TS Grewal Book 2021-22 Edition for the 2021-22 session?

Question number 57 of the Accounting Ratios chapter is a practical one.

Solution of Question Number 57 of Accounting Ratios Chapter of TS Grewal Book 2021-22 Class 12

StatementEffectReason
Obtained a loan of ₹ 5,00,000 from State Bank of India payable after five yearsDeclineTotal Assets increases. due to increase in denominator overall ratio wold decline
Purchased machinery of ₹ 2,00,000 by chequeNo Changeone assets is converting into another assets. No change either on shareholders funds or Total assets.
Redeemed 7% Redeemable Preference Shares ₹ 3,00,000DeclineShareholders funds and total assets decreasing with the same amount. as proprietary ratio is less than one. Due to decrease in numerator and denominator with the same amount. overall ratio will decline.
Issued Equity shares to the vendor of building purchased for ₹ 7,00,000.Imporove Shareholders funds and total assets increasing with the same amount. as proprietary ratio is less than one. Due to increase in numerator and denominator with the same amount. the overall ratio will improve.
Redeemed 10% redeemable debentures of ₹ 6,00,000ImproveIt will decrease total assets. due to a decrease in denominator only. The overall ratio would improve.
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