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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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Question 143 Chapter 4 of +2-B
Miscellaneous
143. On the basis of the following information calculate:
(i) Debt to Equity Ratio; and
(ii) Working Capital Turnover Ratio.
Information:
| Rs | Rs | |||
| Revenue from Operations | (a) Cash Sales | 40,00,000 | Paid-up Share Capital | 17,00,000 |
| (b) Credit Sales | 20,00,000 | 6% Debentures | 3,00,000 | |
| Cost of Goods Sold | 35,00,000 | 9% Loan from Bank | 7,00,000 | |
| Other Current Assets | 8,00,000 | Debentures Redemption Reserve | 3,00,000 | |
| Current Liabilities | 4,00,000 | Closing Inventory | 1,00,000 |
I
| Long-term Debts | = | 6% Debentures + 9% Loan from Bank |
| = | Rs 3,00,000 - Rs 7,00,000 | |
| = | Rs 10,00,000 | |
| Equity | = | Paid-up Share Capital + Debenture Redemption Reserve |
| = | Rs 17,00,000 - Rs 3,00,000 | |
| = | Rs 20,00,000 |
| Debt - Equity Ratio | = | Long-term Debts |
| Equity |
| Gross Profit Ratio | = | Rs. 10,00,000 |
| Rs 20,00,000 | ||
| = | 0.5 : 1 | |
II
| Current Assets | = | Other Current Assets + Inventory |
| = | Rs 8,00,000 + Rs 1,00,000 | |
| = | Rs 9,00,000 | |
| Working Capital | = | Current Assets − Current Liabilities |
| = | Rs 9,00,000 - Rs 4,00,000 | |
| = | Rs 5,00,000 | |
| Net Sales | = | Cash Sales + Credit sales |
| = | Rs 40,00,000 + Rs 20,00,000 | |
| = | Rs 60,00,000 |
| Working Capital Turnover Ratio | = | Net Sales |
| Working Capital |
| Operating Ratio | = | Rs. 60,00,000 |
| Rs 5,00,000 | ||
| = | 12 Times |
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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 143 Chapter 4 of +2-B - T.S. Grewal 12 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 12 Class Book Keeping Part - B - T.S. Grewal - XII.
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