Dear Friends,
Please write the formula and interpretation of Capital Gearing ratio.Normally it is Eqcap+ Resv/ Deb+ Loans, but in Ca Suggested for Final in valuation & Goodwill Formula is the reverse i,e Deb+ Loans/ Eq cap+ Resv
Explain it
Thanking you,
Swarup Datta
I have seen both the formulas on different websites. A better explanation can be found here:
https://www.accountingformanagement.org/capital-gearing-ratio/
Gupta Sachdeva & Co. Chartered Accountants
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