37 :- Total Assets Rs 2,60,000; Total Debts Rs 1,80,000; Current Liabilities Rs 20,000. Calculate Debt to Equity Ratio.
Solution :-
Total Debts = Long term Debts + Current Liabilities
1,80,000 = Long term Debts + 20,000
Long – term Debts = Rs 1,60,000
Total Assets = Shareholder’s Funds + Total Debts
2,60,000 = Shareholder’s Funds + 1,80,000
Shareholder’s Funds = Rs 80,000
Debt – Equity Ratio = Debt/Equity
= 1,60,000/80,000
= 2 : 1