On the basis of following information, answer the questions:
| Particulars | Amount (₹) |
| Inventory | 1,00,000 |
| Total current assets | 1,60,000 |
| Shareholders funds | 4,00,000 |
| 13% debentures | 3,00,000 |
| Current liabilities | 1,00,000 |
| Net profit before tax | 3,51,000 |
| Cost of revenue from operations | 5,00,000 |
On the basis of above case, calculate debt equity ratio.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 0.75:1
Debt-Equity Ratio = Long-term Debts ÷ Shareholders’ Funds. The 13% debentures are the long-term debt.
= ₹3,00,000 ÷ ₹4,00,000
= 0.75 : 1
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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