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From the following… (Accountancy 2026 67/1/1 Q33b)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/1/1 · 4 marks · Long answer

CBSE Class 12 Accountancy 2026: question 33(b)

Set in the CBSE Class 12 board exam of 2026, paper 67/1/1, section B-I, question 33(b), for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q33(b) · 4 marks · Long answerAccounting Ratios

From the following information, calculate :

(i) Debt-Equity Ratio and

(ii) Total Assets to Debt ratio

Information₹
Long-term borrowings8,00,000
Other long-term liabilities80,000
Long term provisions1,20,000
Share capital24,00,000
Reserves and Surplus6,00,000
Non-current Assets36,00,000
Current Assets14,00,000
Current Liabilities10,00,000

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 67/1/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Debt means all non-current liabilities.

Hint 2

Current liabilities are not part of debt here.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Debt = long-term borrowings + other long-term liabilities + long-term provisions = 8,00,000 + 80,000 + 1,20,000 = ₹ 10,00,000. Equity = 24,00,000 + 6,00,000 = ₹ 30,00,000.

    1 mark

  2. (i) Debt-equity ratio = 10,00,000 / 30,00,000 = 1 : 3 (0.33 : 1).

    1 mark

  3. Total assets = 36,00,000 + 14,00,000 = ₹ 50,00,000.

    1 mark

  4. (ii) Total assets to debt = 50,00,000 / 10,00,000 = 5 : 1. (The scheme also accepts debt taken as borrowings plus provisions only, ₹ 9,20,000: 0.31 : 1 and 5.43 : 1.)

    1 mark

Answer: (i) Debt-equity 1 : 3 (0.33 : 1) (ii) Total assets to debt 5 : 1

Where the marks are

  • Debt and equity (1 mark)
  • Debt-equity ratio (1 mark)
  • Total assets (1 mark)
  • Total assets to debt ratio (1 mark)

Revise the chapter

  • Chapter: Accounting Ratios (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Accounting Ratios, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 67/1/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.