Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

What will be the total debts if the Non-current Assets of a firm are ₹26,00,000, Current Assets are ₹9,00,000 and Shareholders' Funds are ₹21,50,000?

Options:

₹435000

₹3150000

₹3500000

₹1350000

Correct Answer:

₹1350000

Explanation:

TOTAL ASSETS= Non-current asset + Current asset
                     = 2600000 + 900000
                      = ₹3500000
 TOTAL DEBTS= Total asset -  Shareholders funds
                     = 3500000- 2150000
                     = ₹1350000