Read the following information and answer the question.

What will be the debt-equity ratio?

0.71:1

The correct answer is option 2- 0.71:1.

* Long term debts = Debentures + loan from bank
                             = 10,00,000 + 7,00,000
                             = ₹17,00,000

* Equity = Equity share capital +  general reserve - profit and loss balance (negative balance)
             = 15,00,000 +10,00,000 - 1,00,000
             = ₹24,00,000

Debt-Equity Ratio = Debts/ Equity
                              = 17,00,000/ 24,00,000
                              = 0.71:1