Debt-Equity Ratio of Dhamaka Ltd is 3 : 1. Which of the following will result in decrease in this ratio?

a) Issue of Debentures for Cash of ₹2,00,000.
b) Issue of Debentures of ₹3,00,000 to Vendors from whom Machinery was purchased.
c) Goods purchased on Credit of ₹1,00,000.
d) Issue of Equity Shares of ₹2,00,000.

Solution

d) Issue of Equity Shares