When debt to equity ratio is 2 state giving reason whether this ratio will increase or decrease or will have no change in each of the following cases:
(i)sale of land (book value Rs 400000) for Rs 500000,(ii) issue of equitey shares for the purchases of palnt and machinier y worth Rs 1000000,(iii) issue of preference shares for redemption of 13 % debentures worth Rs 1000000.

State with reason whether the following transactions will increase decrease or not change the Return on investment Ratio: (i) Purchase of machinery worth Rs 100000 by issue of equity shares. (ii) Carging depreciation of Rs 25000 on machinery (iii) Redemption of debentures by cheque Rs 200000. (iv) conversion of 9% Debentures of Rs 10000 in to equity shares.

State with reason whether the following tansactions will increase decrease or not change the Return on investment Ratio: (i) purchase of machinery of Rs 500000 by issue of equity shares. (ii) Charging depreciation of Rs 12500 on machinery. (iii) Redemption of debentures by chequye Rs 200000 (iv) Converiting Rs 100000, 9% Debentures into equity shares.

State with reason whether the proprietary Ratio will imporve decline or will not change because of the following transactinn if p[roprietary Ratio is 0.8:1 (i) obtained a loan of Rs 500000 from state bank of india payable after five years (ii) purchased machinery of Rs 200000 lby cheque (iii) Redeemed 7% Redeemable preference shares Rs 300000 (iv) Issue equity shares to the vendor of building purchased for Rs 700000 ltrbgt (v) Redeemed 10% reddemable debentures of Rs 600000.

Assuming that the debt to equity ratio is 2:1 state giving reasons, which of the following transacitons would (i) increase,(ii) decrease,(iii) not alter debt to equity ratio: (i) issue of new shares for cash. conversion of debentrues into equity shares (iii) sale of a fixed asset at profit (iv) puchase of a fixed asset on long term deferred payment basis (v) payment ot creditors.

Gross profit ratio of a company is 25% state giving reason which of the following transaction will (a) increase or (b) decrease por , (c ) not alter the gorss profit ratio: (i) purchase of stock in trade Rs 50000 (ii) purchases return Rs 15000 (iii) cash sale fof stock in trade Rs 40000 (iv) stock in trade costing Rs 20000 withdrawn for personal use. (v) stock in trade costing Rs 150000 distributed as free sample.