Calculate Proprietary Ratio from the following data.

i. Non Current Assets = ₹4,00,000
ii. Current Assets = ₹2,00,000
iii. Current Liabilities = ₹3,00,000

There are no non current liabilities of the company.

0.5 : 1

The correct answer is option 2- 0.5 : 1.

Total assets = Current assets + Non current assets
                    = 2,00,000 + 4,00,000
                    = ₹6,00,000

Total assets = Non current liabilities + Current liabilities + Shareholders funds
     6,00,000 = 0 + 3,00,000 + Shareholders funds
Shareholder's Funds = 6,00,000 - 3,00,000
                                 = 3,00,000

Proprietary Ratio = Shareholder's Fund / Total Assets
                           = 3,00,000 / 6,00,000
                           = 0.5 : 1