Read the following information carefully and answer the question. A Limited took over assets of ₹3,00,000 and liabilities of ₹10,000 from X and Co. Ltd. for an agreed purchase consideration of ₹2,70,000 to be satisfied by the issue of 10% debentures of ₹100 each at a premium of 20%. The company also took a loan of ₹10,00,000 from Punjab National Bank and issued 10% debentures of ₹12,00,000 of ₹100 each as collateral security. The rate of interest on the loan is 12% per annum.
Calculate the amount of fixed obligation of the company.
₹1,42,500
Fixed obligations include interest on debentures and preference shares. The total obligation is calculated based on 10% debentures and 12% preference shares.
Fixed obligation = (10% of ₹4,00,000) + (12% of ₹1,00,000) = ₹40,000 + ₹12,000 = ₹1,42,500.
Important Questions from Accounting Ratios
The return on investment will be:
Earning Per Share (EPS) will be:
The Price Earning (P/E) ratio will be:
Match List I with List II:
LIST I LIST II A. Operating Profit Ratio I. Solvency Ratios B. Working Capital Turnover Ratio II. Liquidity Ratios C. Debt-Equity Ratio III. Activity Ratios D. Quick Ratio IV. Profitability Ratios Choose the correct answer from the options given below:
Match List I with List II:
Particulars Amount (₹) Inventory at the beginning 40,000 Credit Purchase 1,60,000 Inventory at the end 38,000 Trade payable at the beginning 14,000 Trade payable at the end 14,500 Cash paid for inventory is:
