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Accountancy
Accounting Ratios
Read the following information and answer the following question.
Calculate Proprietor's ratio.
1:0.6
0.9 :1
0.6 :1
1:0.9
The correct answer is option 3- 0.6 :1
Proprietary ratio = Shareholders funds/Capital employed = 24,00,000/ 40,00,000 = 0.6 :1