Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

Read the following information and answer the following question.

PARTICULARS AMOUNT (₹)
Capital employed 40,00,000
Shareholder's funds 24,00,000
Current liabilities 4,80,000

 

Calculate Proprietor's ratio.

Options:

1:0.6

0.9 :1

0.6 :1

1:0.9

Correct Answer:

0.6 :1

Explanation:

The correct answer is option 3- 0.6 :1

Proprietary ratio = Shareholders funds/Capital employed
                          = 24,00,000/ 40,00,000
                          = 0.6 :1