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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question 116 Chapter 14 of Class 12 Part – 2 – 2024
Miscellaneous (Analytical Questions)
116. (GP Ratio/Current Ratio/Liquid Ratio) Following is the Profit and Loss Account and Balance Sheet of New Company Ltd. for the year ending 31st March, 2018.
STATEMENT OF PROFIT AND LOSS
| Particulars | ₹ | |
| Revenue from Operations (Sales) | 4,00,400 | |
| Add Other Income | ||
| Non-Operating Income | 4,800 | |
| Total Revenue | 4,05,200 | |
| Less : Expenses | ||
| Cost of Goods Sold | 2,40,400 | |
| (Opening Inventory + Purchases + Direct Expenses - Closing Inventory) | ||
| (₹ 61,000 + ₹ 2,52,200 + ₹ 5,600 - ₹ 78,400) | ||
| Administrative Expenses | 80,800 | |
| Selling & Distribution Expenses | 9,600 | |
| Financial Expenses | 5,600 | |
| Other Non-Operating Expenses | 1,600 | 3,38,000 |
| Net Profit | 67,200 |
BALANCE SHEET
| Particulars | ₹ |
| I. Equity and Liabilities | |
| Shareholders' Funds | |
| Equity Share Capital - Paid up | 2,00,000 |
| Preference Share Capital | 80,000 |
| Reserves and Surplus | |
| General Reserve | 4,800 |
| Surplus in Statement of Profit and Loss | 67,200 |
| Current Liabilities | |
| Short-term Borrowings | |
| Bank Overdraft | 2,800 |
| Trade Payable | 4,000 |
| Other Current Liabilities | |
| Output IGST | 8,000 |
| 3,66,800 | |
| II. Assets : | |
| Non-Current Assets | |
| Land and Building | 2,00,000 |
| Plant and Machinery | 40,400 |
| Current Assets | |
| Inventory | 78,400 |
| Trade Receivable | 36,000 |
| Bank | 10,000 |
| Cash | 2,000 |
| 3,66,800 |
Calculate the following ratio : (i) Gross profit ratio (ii) Current ratio (iii) Liquidity ratio.
| (i) Gross Profit Ratio | = | Gross Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 1,60,000 | X | 100 | |
| ₹ 4,00,400 | ||||
| = | 39.96% |
| (ii) Current Ratio | = | Current Assets |
| Current Liabilities | ||
| = | ₹ 1,26,400 | |
| ₹ 14,800 | ||
| = | 8.54 : 1 |
| (iii) Liquid Ratio | = | Liquid Assets |
| Current Liabilities | ||
| = | ₹ 48,000 | |
| ₹ 14,800 | ||
| = | 3.24: 1 |
Working Notes :-
| Gross Profit | = | Sales - Cost of goods sold |
| = | ₹ 4,00,400 - ₹ 2,40,400 | |
| = | ₹ 1,60,000 | |
| Current Assets | = | Inventory + Trade Receivable + Bank + Cash |
| = | ₹ 78,400 + ₹ 36,000 + ₹ 10,000 + ₹ 2,000 | |
| = | ₹ 1,26,400 | |
| Current Liabilities | = | Bank overdraft + Trade Payable + Output IGST |
| = | ₹ 2,800 + ₹ 4,000 + ₹ 8,000 | |
| = | ₹ 14,800 | |
| Liquid Assets | = | Trade Receivable + Bank + Cash |
| = | ₹ 36,000 + ₹ 10,000 + ₹ 2,000 | |
| = | ₹ 48,000 |
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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