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The proprietary ratio of M. Ltd. is 0.80 : 1. State with reasons whether the following transactions will increase, decrease or not change the

 

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 Rs 2,00,000 payable after five years. (ii) Purchased machinery for cash Rs 75,000. (iii) Redeemed 5% redeemable preference shares Rs 1,00,000. (iv) Issued equity shares to the vendors of machinery purchased for Rs 4,00,000.

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