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From the following… (Accountancy 2026 67/5/1 Q33b)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/5/1 · 4 marks · Long answer

CBSE Class 12 Accountancy 2026: question 33(b)

Set in the CBSE Class 12 board exam of 2026, paper 67/5/1, 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 'Proprietary Ratio' and 'Debt-to-Equity Ratio' :

Particulars₹
Equity Share Capital3,00,000
Preference Share Capital1,00,000
Reserves and Surplus1,00,000
Plant and Machinery3,50,000
Non-Current Investments1,00,000
Current Assets2,00,000
Long-term Borrowings1,50,000

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 67/5/1.

Hints

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

Hint 1

Preference share capital is part of shareholders' funds.

Hint 2

Total assets = all assets listed.

Hint 3

Debt here means long-term borrowings only.

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. Shareholders' funds = 3,00,000 + 1,00,000 + 1,00,000 = ₹ 5,00,000.

    1 mark

  2. Total assets = 3,50,000 + 1,00,000 + 2,00,000 = ₹ 6,50,000. Proprietary ratio = 5,00,000 / 6,50,000 = 0.77 : 1.

    1 mark

  3. Debt = long-term borrowings ₹ 1,50,000; equity = shareholders' funds ₹ 5,00,000.

    1 mark

  4. Debt-to-equity ratio = 1,50,000 / 5,00,000 = 0.3 : 1.

    1 mark

Answer: Proprietary ratio 0.77 : 1; Debt-to-equity ratio 0.3 : 1

Where the marks are

  • Shareholders' funds (1 mark)
  • Proprietary ratio (1 mark)
  • Debt and equity identified (1 mark)
  • Debt-to-equity 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 67/5/1: 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.