Following are the data in respect of LP enterprises for the year ended 31st March, 2024: Debt to Total assets ratio : 0.40Long-term debts to equity…

Working Notes: (1) Total liability = Total Assets = 50,00,000 Debt to Total Asset Ratio = 0.40 Debt / Total Assets = 0.40 Debt / 50,00,000 = 0.40 So, Debt = 20,00,000 (2) Total Liabilities = 50,00,000 Equity share Capital + Reserves + Debt = 50,00,000 So, Reserves = 50,00,000 -20,00,000 -20,00,000 So, Reserves & Surplus = 10,00,000 (3) Long term Debt / Equity Shareholders' Fund = 30% Long term Debt / (20,00,000+10,00,000) = 30% Long Term Debt = 9,00,000 (4) So, Accounts Payable = 20,00,000 - 9,00,000 Accounts Payable = 11,00,000 (5) Gross Profit to sales = 20% Cost of Goods Sold = 80% of Sales = 64,00,000 Sales = (100 / 80) × 64,00,000 = 80,00,000 (6) Inventory Turnover = COGS / Closing inventory Inventory holding period = 60 days 360 / Inventory Turnover = 60 Inventory Turnover = 360 / 60 = 6 6 = 64,00,000 / Closing inventory Closing inventory = 10,66,667 (7) Accounts Receivable period = 36 days Accounts Receivable / Credit sales × 360 = 36 Accounts Receivable = (36 / 360) × credit sales Accounts Receivable = (36 / 360) × 80,00,000 (assumed all sales are on credit) Accounts Receivable = 8,00,000 (8) Quick Ratio = 0.9 Quick Assets / Current liabilities = 0.9 (Cash + Debtors) / 11,00,000 = 0.9 Cash + 8,00,000 = 9,90,000 Cash = 1,90,000 (9) Fixed Assets = Total Assets - Current Assets = 50,00,000 – (10,66,667 + 8,00,000 + 1,90,000) Fixed Assets = 29,43,333 (10) Balance Sheet of LP enterprises as on 31st March 2024 Liabilities ₹ Assets ₹ Share Capital 20,00,000 Fixed Assets 29,43,333 Reserved surplus 10,00,000 Current Assets: Long Term Debt 9,00,000 Inventory 10,66,667 Accounts Payable 11,00,000 Accounts Receivables 8,00,000 Cash 1,90,000 Total 50,00,000 Total 50,00,000 (*Note: Equity shareholders' fund represent equity in 'Long term debts to equity ratio'. The question can be solved assuming only share capital as 'equity')