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Question Five (10 Marks) Liabilities Rs. Assets Rs. Equity Share Capital 5,00,000 Land & Building 1,00,000 Preference share capital 2,00,000 Machinery 4,00,000 General Reserve 1,00,000

Question Five (10 Marks) Liabilities Rs. Assets Rs. Equity Share Capital 5,00,000 Land & Building 1,00,000 Preference share capital 2,00,000 Machinery 4,00,000 General Reserve 1,00,000 Furniture 50,000 Secured Loan 3,00,000 Inventory 3,00,000 Sundry Creditors 1,00,000 Sundry Debtors Cash/Bank Balance 3,00,000 50,000 12,00,000 12,00,000 Calculate Following Ratios from the above balance sheet: a) Current Ratio. (2Marks) b) Liquid Ratio. (2Marks) c) Stock Working capital Ratio. (2Marks) d) Capital Gearing Ratio. (2Marks) e) Debt Equity Ratio. (2Marks)

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