Calculate debt equity ratio from the following information: Rs Total Assets 15,00,000 Current Liabilities 6,00,000 Total Debts 12,00,000

Calculate debt equity ratio from the following information:

	Rs
Total Assets	15,00,000
Current Liabilities	6,00,000
Total Debts	12,00,000

Debt Equity Ratio = `\frac{Debt}{Equity}`

Equity = Total Asset - Total Debts

           = 15,000 - 12,000

           = 3,00,000

Debt = Total Debt - Current Liabilities

         = 12,00,000 - 6,00,000

         = 6,00,000

Debt Equity Ratio = `\frac{6,00,000}{3,00,000}`

                              = 2:1

Chapter-5 Accounting Ratios-II

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