Advanced AccountingQuestion 5342 of 305
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3. Debt Equity Ratio Test: Loans cannot be in excess of twice the Equity Funds post Buy-Back Particulars ` in thousands

Options

ALoan funds 2,000
B] 330 (f) Maximum number of shares that can be bought back @ ` 30 per share 11,000 shares
CPresent equity shareholders fund (`) 1,440
D
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Correct Answer

Option ALoan funds 2,000

All Options:

  • ALoan funds 2,000
  • B] 330 (f) Maximum number of shares that can be bought back @ ` 30 per share 11,000 shares
  • CPresent equity shareholders fund (`) 1,440
  • D

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Detailed Solution & Explanation

This question is a parsed fragment from the Suggested Answer of the examination. It presents the Balance Sheet presentation, Debt-Equity Ratio test under the reconstruction scheme, or absorption entries under AS 14. Based on the parsed data and structural context in the suggested answers, Option A is the correct answer.
Hence, **Option A** is the correct answer.

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