Ownclasses

The proprietary ratio of M Ltd. is 0.80:1 State with reasons whether the following transactions will increase, decrease or not change the proprietary ratio:
(i)   Obtained a loan from bank ₹ 2,00,000 payable after five years.
(ii)  Purchased machinery for cash ₹ 75,000
(iii)  Redeemed 5% redeemable preference shares ₹ 1,00,000
Issued Equity shares to the vendors of machinery purchased for ₹ 4,00,000.

Answer

Proprietary Ratio of M Ltd. 0.80 : 1

Proprietary space Ratio space equals space fraction numerator Proprietor apostrophe straight s space Funds over denominator Total space Assets end fraction

The proprietary ratio of M Ltd. is 0.80:1 State with reasons whetThe proprietary ratio of M Ltd. is 0.80:1 State with reasons whet