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Aradya Ltd. had debt equity ratio of 2.5: 1. State which of the following transaction will not effect the Debt Equity Ra…

Q1

Aradya Ltd. had debt equity ratio of 2.5: 1. State which of the following transaction will not effect the Debt Equity Ratio :

a

Purchase of ₹ 15,00,000 machinery by taking bank loan of ₹ 12,00,000

b

₹ 2,00,000 paid to creditors

c

Conversion of ₹ 1,00,000 debentures into Equity shares of ₹ 100 each

d

Sale of furniture (book value of ₹ 5,00,000 ) for ₹ 5,50,000

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