Calculate Debt equity Ratio :
13% Debentures ₹ 6,00,000
Shareholders fund ₹ 8,00,000
Net Profit before tax ₹ 3,51,000
Current Liabilities ₹ 1,60,000
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 0.75 : 1
Debt-equity ratio compares long-term debt with shareholders’ funds. The 13% debentures are the long-term debt; the net profit and current liabilities are not needed.
Debt-Equity Ratio = Long-term Debts ÷ Shareholders’ Funds
= ₹6,00,000 ÷ ₹8,00,000
= 0.75 : 1
NCERT (2026-27 edition):
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