38 :- Calculate Debt to Equity Ratio: Equity Share Capital Rs 5,00,000; General Reserve Rs 90,000; Accumulated Profits Rs 50,000; 10% Debentures Rs 1,30,000; Current Liabilities Rs 1,00,000.
Solution :-
Shareholder’s Funds = Equity Share Capital + General Reserves + Accumulated Profit
= 5,00,000 + 90,000 + 50,000
= Rs 6,40,000
Debt = 10% Debentures
= Rs 1,30,000
Debt to Equity Ratio = Debt/Equity
= 1,30,000/6,40,000
= 0.203 : 1