42 :- Calculate Debt to Equity Ratio: Total Assets Rs 14,00,000; Total Debt Rs 12,00,000; Capital Employed Rs 10,00,000.
Solution :-
Equity = Total Assets – Total Debts
= 14,00,000 – 12,00,000
= Rs 2,00,000
Capital Employed = Equity + Debt (Non – current Liabilities)
10,00,000 = 2,00,000 + Debt (Non – current Liabilities)
Debt (Non – current Liabilities) = Rs 8,00,000
Debt – Equity Ratio = Debt/Equity
= 8,00,000/2,00,000
= 4 : 1