1. From the following balance sheet of Y Ltd., calculate the total capitalisation. Also comment on the fi nancial structure and Capital Structure of the fi rm.

Balance Sheet of Y Ltd.

Liabilities Amount (`) Assets Amount (`)

Equity share capital Retained earnings 10% Preference Share Capital 8% debentures 9% bank loan Current Liabilities 2,00,000 80,000 80,000 1,20,000 1,20,000 40,000 Fixed assets Current Assets 3,20,000 3,20,000 6,40,000 1,60,000