From the following Balance sheet of Defence Brokers Ltd, compute Debt to Equity Ratio:

Explanation

Debt to Equity Ratio =`("Debt")/("Equity shareholders funds")=(Rs 1785000)/(Rs 1270000)=1.41:1`
Debt =Long-term Borrowings + Longs-term Provisions
=Rs 1500000+Rs 285000=Rs 1785000
Equity or Share holders' funds=Share Capital+ Reserves and surplus
`=Rs 1500000-Rs 230000^(*)=Rs 1270000`.
Rs 230000, being negative amount of surplus i.e Balance in statement of profit and loss shown under Reserves and surplus is deducted.