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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

Priyanka Udeshi

CA Inter

6K+

13-Mar-21 13:15

39

Answers (9)

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

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Sriram Somayajula

Sriram Somayajula

Admin

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

Priyanka Udeshi

CA Inter

6K+

13-Mar-21 14:36

Please help with this

Will revert


Sriram Somayajula

Sriram Somayajula

Admin

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

Sriram Somayajula

Admin

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

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.


Madhuri Veluri

Madhuri Veluri

Moderator

22-Mar-21 10:43

Is it correct?

It is correct.


Madhuri Veluri

Madhuri Veluri

Moderator

25-Mar-21 10:56