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Compute Debt Equity Ratio using the following information:

Particulars Amount (RS.)
Total Assets 3,50,000
Total Debts 2,50,000
Current Liabilities 80,000
Answer

b) Debt Equity Ratio = Debts/ Equity
Debt = Total Debt – CL         
        = 2,50,000 – 80,000 = 1,70,000
Equity = Total Assets – Total Debts          
        = 3,50,000 – 2,50,000 = 1,00,000
Debt Equity Ratio =   1,70,000/1,00,000=1.7:1