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In solution Proprietary fund is calculated using TA= Equity + debt but shouldn't it be TA= Equity+Debt+CL? Please explain

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Priyanka Udeshi

CA Inter

6K+

13-Mar-21 13:15

39

Total Assets = FA + NWC Total Liabilities = Equity + Debt

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Sriram Somayajula

13-Mar-21 14:25

Total Assets = FA + NWC Total Liabilities = Equity + Debt

Sir TA= FA+CA= 5250000 Total Assets = Total Liabilities So 5250000= Total liabilities But in solution 5250000= Equity + debt So what about Current liability? It is not considered in both sides

Priyanka Udeshi

CA Inter

6K+

13-Mar-21 14:36

Will revert

Sriram Somayajula

14-Mar-21 12:35

Will revert

you are right. when using the D: E ratio they should have taken D+E = FA+CA-CL. It is a mistake by ICAI

Sriram Somayajula

14-Mar-21 12:44

you are right. when using the D: E ratio they should have taken D+E = FA+CA-CL. It is a mistake by ICAI

Okay sir , so what will be the correct solution can you send me the full solution please

Priyanka Udeshi

CA Inter

6K+

21-Mar-21 00:51

Okay sir , so what will be the correct solution can you send me the full solution please

Please solve the question on your own and send us the solution. We will look into it and let you know if it correct.

Moderator

22-Mar-21 10:43

Is it correct?

It is correct.

Moderator

25-Mar-21 10:56

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