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Question 105 Chapter 14 of Class 12 Part – 2 – 2024
Miscellaneous (Analytical Questions)
105. (GP Ratio/Debt Equity Ratio/WC T/O Ratio) From the following information calculate the
(a) Gross Profit Ratio (b) Debt Equity ratio (c) Working capital turnover Ratio
Information
| Particulars | ₹ | Particulars | ₹ |
| Net Sales (Revenue from Operation) | 5,65,000 | Current Assets | 3,25,000 |
| Cost of Goods sold (i.e. Cost of Revenue from Operation) | 3,75,000 | Equity share Capital | 3,95,000 |
| Current Liabilities | 1,75,000 | Debentures | 1,29,000 |
| Loan | 1,25,000 |
| (i) Gross Profit Ratio | = | Gross Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 1,90,000 | X | 100 | |
| ₹ 5,65,000 | ||||
| = | 33.62% |
| (ii) Debt Equity Ratio | = | Debt | X | 100 |
| Equity | ||||
| = | ₹ 2,54,000 | X | 100 | |
| ₹ 3,95,000 | ||||
| = | 0.64 : 1 |
| (iii) Working Capital Turnover Ratio | = | Sales |
| Working Capital | ||
| = | ₹ 5,65,000 | |
| ₹ 1,50,000 | ||
| = | 3.76 times |
| Gross Profit | = | Sales - Cost of goods sold |
| = | ₹ 5,65,000 - ₹ 3,75,000 | |
| = | ₹ 1,90,000 | |
| Debt | = | Debentures + Loan |
| = | ₹ 1,29,000 + ₹ 1,25,000 | |
| = | ₹ 2,54,000 | |
| Working Capital | = | Current Assets – Current Liabilities |
| = | ₹ 3,25,000 - ₹ 1,75,000 | |
| = | ₹ 1,50,000 |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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