Question 103 Chapter 14 of Class 12 Part – 2 – 2024

Question 103 Chapter 14 of Class 12 Part – 2 – 2024

Miscellaneous (Analytical Questions)

103. (Current Ratio/Acid Test Ratio/Operating Ratio/GP Ratio) Calculate the following ratios, from the details given below :
(i) Current ratio ; (ii) Acid-test ratio ;
(iii) Operating ratio; and (iv) Gross profit ratio.
Details

	₹
Current assets	70,000
Current liabilities	35,000
Inventory	30,000
Sales (Revenue from Operation)	1,20,000
Operating expenses	40,000
Cost of goods sold	60,000

The solution of Question 103 Chapter 14 of Class 12 Part – 2 – 2024: -

(i) Current Ratio	=	Current Assets
		Current Liabilities
	=
	=	₹ 70,000
		₹ 35,000
	=	2 : 1

(ii) Acid test Ratio	=	Quick Assets
		Current Liabilities
	=
	=	₹ 40,000
		₹ 35,000
	=	1.14 : 1

(iii) Operating Ratio	=	Operating Cost	X	100
		Net Sales
	=
	=	₹ 1,00,000	X	100
		₹ 1,20,000
	=	83.33%

(iv) Gross Profit Ratio	=	Gross Profit	X	100
		Net Sales
	=
	=	₹ 60,000	X	100
		₹ 1,20,000
	=	50%

Working Notes

Quick Assets	=	Current Assets - Inventory
	=	₹ 70,000 - ₹ 30,000
	=	₹ 40,000
Operating Cost	=	Cost of goods sold + Operating Expenses
	=	₹ 60,000 + ₹ 40,000
	=	₹ 1,00,000
Gross Profit	=	Sales – Cost of goods sold
	=	₹ 1,20,000 - ₹ 60,000
	=	₹ 60,000