Debt-Equity Ratio of Z Ltd. is 2: 1. State with reason whether the following transactions will improve, decline or will not change the debt-equity ratio:

(i) Conversion of 3,00,000, 9% debentures into equity shares.

(ii) Cash received from debtors 1,00,000

(iii) Redemption of 10,00,000, 11% debentures.

(iv) Purchase of goods on credit 4,00,000.

Marks-4, CBSE:2022-23/Zone-5/Set-1/Q-33*

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