A company's debt-equity ratio is 1:1. If total assets are ₹10,00,000, the amount of debt is: MCQ with Answer and Explanation

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A company's debt-equity ratio is 1:1. If total assets are ₹10,00,000, the amount of debt is:

A. ₹10,00,000

B. ₹5,00,000

C. ₹2,00,000

D. ₹4,00,000

Answer: Option B

Solution (By JKSSB Mock Tests)

Debt-equity 1:1 implies Debt = Equity. Total assets = Debt + Equity = 2x. So x = ₹5,00,000, hence debt ₹5,00,000.

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Correct Answer: Option A

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Correct Answer: Option D

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