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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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Question 109 Chapter 4 of +2-B
Miscellaneous (Analytical Questions)
109. (GP Ratio/NP Ratio/WC T/O Ratio/Debt Equity Ratio) Following figures have been extracted from the books of Elite Electricals :
| ₹ | |
| Net sales (Revenue from Operation) | 30,00,000 |
| Cost of goods sold (i.e. Cost of Revenue from Operation) | 20,00,000 |
| Net profit | 3,00,000 |
| Current assets | 6,00,000 |
| Current liabilities | 2,00,000 |
| Paid-up share capital | 5,00,000 |
| Debentures | 2,50,000 |
Compute any two ratios based on above figures :
(i) Gross profit ratio ; (ii) Net profit ratio ; (iii) Working capital turnover ratio; (iv) Debt equity ratio.
| (i) Gross Profit Ratio | = | Gross Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 10,00,000 | X | 100 | |
| ₹ 30,00,000 | ||||
| = |
33.33% |
| (ii) Net Profit Ratio | = | Net Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 3,00,000 | X | 100 | |
| ₹ 30,00,000 | ||||
| = |
10% |
| (iii) Working Capital Turnover Ratio | = | Net Sales |
| Net Working Capital | ||
| = | ₹ 30,00,000 | |
| ₹ 4,00,000 | ||
| = | 7.5 times |
| (iv) Debt Equity Ratio | = | Debt |
| Equity | ||
| = | ₹ 2,50,000 | |
| ₹ 8,00,000 | ||
| = | 2.5: 8 |
Working Notes :
| Gross Profit | = | Sales - Cost of goods sold |
| = | ₹ 30,00,000 - ₹ 20,00,000 | |
| = | ₹ 10,00,000 | |
| Working Capital | = | Current Assets – Current Liabilities |
| = | ₹ 6,00,000 - ₹ 2,00,000 | |
| = | ₹ 4,00,000 | |
| Shareholders’ Funds or Equity | = | Equity Share Capital + Net Profit |
| = | ₹ 5,00,000 + ₹ 3,00,000 | |
| = | ₹ 8,00,000 |
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.
This guide covers "Question 109 Chapter 4 of +2-B - USHA Publication 12 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication Part 2 volume I.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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