From the following information, calculate 'Proprietary Ratio' : Particulars (<) Creditors $\displaystyle 3,50,000$ Bills Payable $\displaystyle 1,50,000$ $\displaystyle 10$% Debentures $\displaystyle 5,00,000$ Share Capital $\displaystyle 12,00,000$ Reserves and Surplus $\displaystyle 3,00,000$

Proprietary Ratio = Shareholders Funds Total Assets Shareholders Funds = Share Capital + Reserves and Surplus = $\displaystyle 12,00,000$ + $\displaystyle 3,00,000$ = `$\displaystyle 15,00,000$ Total Assets = Shareholders Funds + Non-Current Liabilities + Current Liabilities = $\displaystyle 15,00,000$ + $\displaystyle 5,00,000$ + $\displaystyle 3,50,000$ + $\displaystyle 1,50,000$ = ` $\displaystyle 25,00,000$ Proprietary Ratio = $\displaystyle 15,00,000$ $\displaystyle 25,00,000$ = $\displaystyle 3$ : $\displaystyle 5$ = $\displaystyle 0.6$ : $\displaystyle 1$ Alternative Proprietary Ratio = Shareholders Funds Net Assets (Capital Employed) Shareholders Funds = Share Capital + Reserves and Surplus = $\displaystyle 12,00,000$ + $\displaystyle 3,00,000$ `$\displaystyle 15,00,000$ = Net Assets (Capital Employed) = Shareholders Funds + Non-Current Liabilities = $\displaystyle 15,00,000$ + $\displaystyle 5,00,000$ = ` $\displaystyle 20,00,000$ Proprietary Ratio = $\displaystyle 15,00,000$ $\displaystyle 20,00,000$ = $\displaystyle 3$ : $\displaystyle 4$ = $\displaystyle 0.75$ : $\displaystyle 1$