Rs. 75 lakhs 1.25 Net worth Net worth = Rs. 60 lakhs . 7 Calculation of Equity share capital Reserves = 0.2 (given Capital Fixed assets = 1.25 Capital + Reserves 75 1.25 Capital +0.2 capital 1.25 x 12 capital = 75 1.5 capital - 75 Capital = 75/1.5=50 Capital = Rs. 50 lakhs 8 Calculation of Debt Debt = ( 0.6 (given) Equity Debt = 0.6 50 Debt = 0.6 x 50 Rs. 30 lakhs . 9 Calculation of Reserves Reserves = 0.2 Equity = 0.2 x 50 Rs. 10 lakhs Globe Traders Balance Sheet as 31/3/2009 Liabilities Rs. lakhs Equity capital 50 Reserves and surplus 10 Debt 30 Assets (Rs. lakhs) Fixed assets 75 Current assets: Stock 10 Debtors 15 Cash and Bank 10 (bal. figure) 110 Current liabilities 20 110 Problem 5 With the following ratios and other information, prepare Trading Account, Profit and Loss Account and Balance sheet of Anand Gross profit ratio 25% Fixed assets 5/4 Capital Net profit / Sales ratio 20% Fixed assets / Total5/7 current assets Sales / Inventory ratio 10 times Fixed assets Rs. 10 lakh Net profit / Capital 1/4 Closing stock Rs. 1 lakh 1