Take Class 12 Tuition from the Best Tutors
Affordable fees 1-1 or Group class Flexible Timings Verified Tutors Search in
Asked by Pradeep Last Modified
Answer 
To answer this question, we need to take a step back and just classify the elements of "Debt Equity Ratio" & "Current Ratio".
"Debt-Equity ratio" is relationship between Debts & Own capital (does not include any current liabilities) on the other side the current ratio is showing relationship between Current Assets vis-a-vis Current Liabilities.
Every transaction that we record in books of accounts impact two accounts and if transactions impact the accounts lying in above categories it will certainly impact the ratio as well.
Let’s see,
Settlement of Long Term Liabilities from issue of Share Capital decreases the Debt Equity ratio being debt reduced & Capital increased however the amount came in bank via issue of capital got paid to long term liabilities so no impact on current ratio.
read less
Related Questions
Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com
Ask a QuestionRelated Lessons
Recommended Articles
Meet Raghunandan.G.H, a B. Tech Tutor from...
Raghunandan is a passionate teacher with a decade of teaching experience. Being a skilled trainer with extensive knowledge, he provides high-quality BTech, Class 10 and Class 12 tuition classes. His methods of teaching with real-time examples makes difficult topics simple to understand. He explains every concept in-detail...
Read full article >
Meet Radhe Shyam Burman, an MBA Tutor from...
Radhe Shyam is a highly skilled accounts and finance trainer with 8 years of experience in teaching. Accounting is challenging for many students and that’s where Radhe Shyam’s expertise comes into play. He helps his students not only in understanding the subject but also advises them on how to overcome the fear of accounts...
Read full article >
Meet Sandhya R, a B.Sc tutor from Bangalore
Sandhya is a proactive educationalist. She conducts classes for CBSE, PUC, ICSE, I.B. and IGCSE. Having a 6-year experience in teaching, she connects with her students and provides tutoring as per their understanding. She mentors her students personally and strives them to achieve their goals with ease. Being an enthusiastic...
Read full article >
Meet Mohammad Wazid, a skilled trainer for...
Mohammad Wazid is a certified professional tutor for class 11 students. He has 6 years of teaching experience which he couples with an energetic attitude and a vision of making any subject easy for the students. Over the years he has developed skills with a capability of understanding the requirements of the students. This...
Read full article >
Looking for Class 12 Tuition ?
Learn from the Best Tutors on UrbanPro
Are you a Tutor or Training Institute?
Join UrbanPro Today to find students near youThe best tutors for Class 12 Tuition Classes are on UrbanPro
The best Tutors for Class 12 Tuition Classes are on UrbanPro
5
