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Accountancy · 2026 · 4 marks
CBSE 2026 · Region 1 · Set 3 · Q33
From the following information, calculate: (i) Current ratio and (ii) Debt to capital employed ratio Information? Total Assets 6,00,000 Non-Current…
From the following information, calculate : (i) Current ratio and (ii) Debt to capital employed ratio Information ? Total Assets $\displaystyle 6,00,000$ Non-Current Liabilities $\displaystyle 1,40,000$ Shareholders' Funds $\displaystyle 4,20,000$ Non-current Assets $\displaystyle 5,20,000$
From the following information, calculate : (i) Debt-Equity Ratio and (ii) Total Assets to Debt ratio Information Long-term borrowings $\displaystyle 8,00,000$ Other long-term liabilities $\displaystyle 80,000$ Long term provisions $\displaystyle 1,20,000$ Share capital $\displaystyle 24,00,000$ Reserves and Surplus $\displaystyle 6,00,000$ Non-current Assets $\displaystyle 36,00,000$ Current Assets $\displaystyle 14,00,000$ Current Liabilities $\displaystyle 10,00,000$
Marking-scheme solution
(i)
Current Ratio = Current Assets
Current Liabilities
Current Assets = Total Assets - Non-current Assets
= ₹$\displaystyle 6,00,000$ - ₹$\displaystyle 5,20,000$ = ₹$\displaystyle 80,000$
Current Liabilities = Total Liabilities -Non-Current liabilities - Shareholders funds
= ₹$\displaystyle 6,00,000$ - ₹$\displaystyle 1,40,000$ - ₹$\displaystyle 4,20,000$
= ₹$\displaystyle 40,000$
Current Ratio = ₹$\displaystyle 80,000$/₹$\displaystyle 40,000$
= $\displaystyle 2$:$\displaystyle 1$
(ii) Debt to Capital employed ratio = Debt/ Capital employed
Debt = Non-current Liabilities= ₹$\displaystyle 1,40,000$
Capital employed = Shareholders funds + Non-current Liabilities
= ₹$\displaystyle 4,20,000$ + ₹$\displaystyle 1,40,000$ = ₹$\displaystyle 5,60,000$
Alternatively
Capital employed = Non-Current Assets + Current Assets - Current Liabilities
= ₹$\displaystyle 5,20,000$ + ₹$\displaystyle 80,000$ - ₹$\displaystyle 40,000$
= ₹$\displaystyle 5,60,000$
Debt to capital employed ratio = ₹$\displaystyle 1,40,000$/ ₹$\displaystyle 5,60,000$
= $\displaystyle 1$ : $\displaystyle 4$ or $\displaystyle 0.25$:$\displaystyle 1$
Q. (b) From the following information……….
Ans. (i) Debt Equity Ratio = Debt/ Equity
Debt = Long Term Borrowings + Long Term Provisions + Other Long term Liabilities
= ₹$\displaystyle 8,00,000$ + ₹$\displaystyle 1,20,000$ + ₹$\displaystyle 80,000$
= ₹$\displaystyle 10,00,000$
Equity = Share Capital + Reserves and Surplus
= ₹$\displaystyle 24,00,000$ + ₹$\displaystyle 6,00,000$ = ₹$\displaystyle 30,00,000$
Debt Equity Ratio = ₹$\displaystyle 10,00,000$/ ₹$\displaystyle 30,00,000$= $\displaystyle 1$:$\displaystyle 3$ or $\displaystyle 0.33$:$\displaystyle 1$
(ii)
Total Assets to Debt ratio= Total Assets/ Debt
Total Assets = Non-Current Assets + Current Assets
= ₹$\displaystyle 36,00,000$ + ₹$\displaystyle 14,00,000$
= ₹$\displaystyle 50,00,000$
Debt= ₹$\displaystyle 10,00,000$
Total Assets to Debt Ratio =₹$\displaystyle 50,00,000$/ ₹$\displaystyle 10,00,000$ = $\displaystyle 5$ : $\displaystyle 1$
Alternate Solution-
(i)
Debt Equity Ratio = Debt/ Equity
Debt = Long Term Borrowings + Long Term Provisions
= ₹$\displaystyle 8,00,000$ + ₹$\displaystyle 1,20,000$
= ₹$\displaystyle 9,20,000$
Equity = Share Capital + Reserves and Surplus
= ₹$\displaystyle 24,00,000$ + ₹$\displaystyle 6,00,000$ = ₹$\displaystyle 30,00,000$
Debt Equity Ratio = ₹$\displaystyle 9,20,000$/ ₹$\displaystyle 30,00,000$= $\displaystyle 23$:$\displaystyle 75$ or $\displaystyle 0.31$:$\displaystyle 1$
(ii)
Total Assets to Debt ratio= Total Assets/ Debt
Total Assets = Non-Current Assets + Current Assets
= ₹$\displaystyle 36,00,000$ + ₹$\displaystyle 14,00,000$
= ₹$\displaystyle 50,00,000$
Debt= ₹$\displaystyle 9,20,000$
Total Assets to Debt Ratio =₹$\displaystyle 50,00,000$/ ₹$\displaystyle 9,20,000$ = $\displaystyle 125$:$\displaystyle 23$ or $\displaystyle 5.43$:$\displaystyle 1$
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CBSE Class 12 Accountancy past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.