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Q6. Below is the liability and equity section of ABC company: 2019 Liabilities Non-current liabilities Borrowing Lease liabilities Employee's end of service benefits Tax payable

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Q6. Below is the liability and equity section of ABC company: 2019 Liabilities Non-current liabilities Borrowing Lease liabilities Employee's end of service benefits Tax payable Current liabilities Trade and other payables Borrowings 30,000 30,000 50,000 100,000 210,000 50,000 70,000 70,000 50,000 450,000 1,000,000 1,450,000 Lease liabilities Deferred revenue Total liabilities Equity Total equity and liabilities a. Compute total liability to equity = (450,000/1000,000) * 100 = 45% b. Compute total debts to equity = (30,000 + 30,000 + 70,000 + 70,000)/1000,000 = 20% Q6. Below is the liability and equity section of ABC company: 2019 Liabilities Non-current liabilities Borrowing Lease liabilities Employee's end of service benefits Tax payable Current liabilities Trade and other payables Borrowings 30,000 30,000 50,000 100,000 210,000 50,000 70,000 70,000 50,000 450,000 1,000,000 1,450,000 Lease liabilities Deferred revenue Total liabilities Equity Total equity and liabilities a. Compute total liability to equity = (450,000/1000,000) * 100 = 45% b. Compute total debts to equity = (30,000 + 30,000 + 70,000 + 70,000)/1000,000 = 20%

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