What will be the effect on the debt-equity ratio (1:2), if a fixed asset is purchased for ₹50000 on a long-term deferred basis and what will be the newly revised ratio?

Improve, 0.75:1

Debt-Equity Ratio is given as 1 : 2, therefore, it may be assumed that Long term Debts are  ₹1,00,000 and Shareholder's Funds are ₹2,00,000.
As a result of the credit purchase of a fixed asset for ₹50,000 on long-term payment basis, long term debts will increase by ₹50,000, and these will stand at 100000 + 50,000 = ₹1,50,000.
Therefore, the revised ratio will be :
1,50,000/200000 = 0.75:1
So,before the purchase of fixed asset, the ratio was 1 : 2 (or .5 : 1) which now stands 0.75:1. It means that the ratio has increased. So,it can be concluded that increase in long term debts increases the ratio.