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How to calculate solvency ratio?

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Siri S

Siri S

CS Executive

★ 1K+

20-Sep-21 12:44

646

Answers (3)

Debt to equity ratio = Long term debt / shareholderâ??s funds

Sudha Reddy

Sudha Reddy

CA Final

★ 20K+

22-Sep-21 11:17

Shareholder's funds include (i) Ordinary share capital, (ii) Credit balance of profit and loss account and free reserves etc., but deduction should be made for fictitious assets if any in the balance sheet.

Sudha Reddy

Sudha Reddy

CA Final

★ 20K+

22-Sep-21 11:17

Sudha Reddy

Shareholder's funds include (i) Ordinary share capital, (ii) Credit balance of profit and loss account and free reserves etc., but deduction should be made for fictitious assets if any in the balance sheet.

Thank you

Thread Starter

Siri S

Siri S

CS Executive

★ 1K+

22-Sep-21 15:38

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