Question 147 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 147 Chapter 4 of +2-B

Question 147 Chapter 4 of +2-B

Miscellaneous

147. From the following informations, calculate Return on Investment or Return on Capital Employed :

  Rs
Share Capital 5,00,000
Reserves and Surplus 2,50,000
Net Fixed Assets 22,50,000
Non-current Trade Investments 2,50,000
Current Assets 11,00,000
10% Long-term Borrowings 20,00,000
Current Liabilities 8,50,000
Long-term Provision Nil

 

The solution of Question 147 Chapter 4 of +2-B: –

I

Net Profit before tax = Rs 6,00,000
Net Profit before interest, tax and dividend = Net Profit before tax + Interest on long-term borrowings
  = Rs 6,00,000 + Rs 2,00,000
  = Rs 8,00,000
Capital Employed = Share Capital + Reserves and Surplus + Long-term borrowings
  = Rs 5,00,000 + Rs 2,50,000 + Rs 20,00,000
  = Rs 27,50,000
Return on Investment Ratio = Net Profit before interest, tax and dividend X 100
Capital Employed
 Return on Investment Ratio = Rs. 8,00,000 X 100
Rs 27,50,000
  = 29.09%    

 

 

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 147 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 146 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 146 Chapter 4 of +2-B

Question 146 Chapter 4 of +2-B

Miscellaneous

146. Calculate Current Ratio, Quick Ratio and Debt to Equity Ratio from the
figures given below:

Particulars Rs
Inventory  30,000
Prepaid Expenses 2,000
Other Current Assets 50,000
Current Liabilities 40,000
12% Debentures 30,000
Accumulated Profits  10,000
Equity Share Capital  1,00,000
Non-current Investments 15,000

 

The solution of Question 146 Chapter 4 of +2-B: –

I

Current Assets = Inventory + Prepaid Expenses + Other Current Assets
  = Rs 30,000 + Rs 2,000 + Rs 50,000
  = Rs 82,000
Current Liabilities = Rs 40,000
Current Ratio = Current Assets
Current Liabilities
Current Ratio = Rs. 82,000
Rs 40,000
  = 2.05 : 1

 

II

Liquid Assets = Current Assets − Inventory − Prepaid Expenses
  = Rs 82,000 − Rs 30,000 − Rs 2,000
  = Rs 50,000
Liquid Ratio = Liquid Assets
Current Liabilities
Liquid Ratio = Rs. 50,000
Rs 40,000
  = 1.25 : 1


III

Long term Debts = Rs 30,000
Equity = Accumulated Profits + Equity Share Capital
  = Rs 10,000 + Rs 1,00,000
  = Rs 1,10,000
Debt Equity Ratio = Debts
Equity
Debt Equity Ratio = Rs. 30,000
Rs 1,10,000
  = 0.27 : 1



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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 146 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 145 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 145 Chapter 4 of +2-B

Question 145 Chapter 4 of +2-B

Miscellaneous

145. From the following information related to Naveen Ltd.,
calculate (a) Return on Investment and (b) Total Assets to Debt Ratio:
Information: Fixed Assets Rs 75,00,000; Current Assets Rs 40,00,000; Current Liabilities Rs 27,00,000; 12% Debentures Rs 80,00,000 and Net Profit before Interest, Tax and Dividend Rs 14,50,000.

 

The solution of Question 145 Chapter 4 of +2-B: –

I

Net Profit before Interest & Tax = Rs 14,50,000
Capital Employed = Fixed Assets + Current Assets – Current Liabilities
  = Rs 75,00,000 + Rs 40,00,000 – Rs 27,00,000
  = Rs 88,00,000
 Return on Investment Ratio = Net Profit before Interest & Tax X 100
Capital Employed
 Return on Investment Ratio = Rs. 14,50,000 X 100
Rs 88,00,000
  = 16.48%    

II

Total Assets = Fixed Assets + Current Assets
  = Rs 75,00,000 + Rs 40,00,000
  = Rs 1,15,00,000
Long term Debts = Rs 80,00,000
Total Assets to Debts Ratio = Total Assets
Long term Debts
  = Rs. 1,15,00,000
Rs 80,00,000
  = 1.44 : 1




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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 145 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 144 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 144 Chapter 4 of +2-B

Question 144 Chapter 4 of +2-B

Miscellaneous

144. From the following, calculate (a) Debt to Equity Ratio; (b) Total Assets to Debt Ratio; and (c) Proprietary Ratio:

  Rs   Rs
Equity Share Capital  75,000 Debentures 75,000
Preference Share Capital 25,000 Trade Payable 40,000
General Reserve 45,000 Outstanding Expenses 10,000
Balance in Statement of Profit and Loss  30,000    

 

The solution of Question 144 Chapter 4 of +2-B: –

I

Long-term Debts = Rs 75,000
Equity = Equity Share Capital + Preference Share Capital + General Reserve + Balance in Statement of Profit & Loss
  = Rs 75,000 + Rs 25,000 + Rs 45,000 + Rs 30,000
  = Rs 1,75,000
Debt – Equity Ratio = Long-term Debts
Equity
Gross Profit Ratio = Rs. 75,000
Rs 1,75,000
  = 0.43 : 1
     

 

II

Total Assets = Equity Share Capital + Preference Share Capital + General Reserve + Balance in Statement of Profit & Loss + Debentures + Trade Payables + Outstanding Expenses
  = Rs 75,000 + Rs 25,000 +Rs 45,000 + Rs 30,000 + Rs 75,000 + Rs 40,000 + Rs10,000
  = Rs 3,00,000
Long term Debts = Rs 75,000
Total Assets to Debts Ratio = Total Assets
Long term Debts
  = Rs. 3,00,000
Rs 75,000
  = 4 : 1

 

III

Shareholders’ Funds = Equity Share Capital + Preference Share Capital + General Reserve + Balance in Statement of Profit & Loss
  = 75,000+25,000+45,000+30,000
  = Rs 1,75,000
Total Assets = Equity Share Capital + Preference Share Capital + General Reserve +Balance in Statement of Profit & Loss + Debentures + Trade Payables + Outstanding Expenses
  = Rs 75,000 + Rs 25,000 + Rs 45,000 + Rs 30,000 + Rs 75,000 + Rs 40,000 + Rs 10,000
  = Rs 3,00,000
Proprietary Ratio = Shareholders’ Funds
Total Assets
  = Rs. 1,75,000
Rs 3,00,000
  = 0.58 : 1



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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 144 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 143 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 143 Chapter 4 of +2-B

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

 

The solution of Question 143 Chapter 4 of +2-B: –

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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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 143 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 142 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 142 Chapter 4 of +2-B

Question 142 Chapter 4 of +2-B

Miscellaneous

142. From the information given below, calculate any three of the following ratio:
(i)Gross Profit Ratio;
(ii) Working Capital Turnover Ratio:
(iii)Debt to Equity Ratio; and
(iv) Proprietary Ratio.

  Rs    Rs 
Revenue from Operations Net Sales  5,00,000 Current Liabilities 1,40,000
Cost of Revenue from Operations (Cost of Goods Sold) 3,00,000 Paid-up Share Capital  2,50,000
Current Assets 2,00,000 13% Debentures 1,00,000

 

The solution of Question 142 Chapter 4 of +2-B: –

I

Net Sales = Rs 5,00,000
Cost of Goods Sold = Rs 35,000
Gross Profit = Net Sales − Cost of Goods Sold
  = Rs 5,00,000 – Rs 3,00,000
  = Rs 2,00,000
Gross Profit Ratio = Gross Profit X 100
Net Sales
Gross Profit Ratio = Rs 2,00,000 X 100
Rs 5,00,000
  = 40%    
         

 

II

Net Sales = Rs 1,20,000
Operating Cost = Cost of Goods Sold + Operating Expenses
  = Rs 60,000 + Rs 40,000
  = Rs 1,00,000
Operating Ratio = Operating Cost X 100
Net Sales
Operating Ratio = Rs. 1,00,000 X 100
Rs 1,20,000
  = 83.33%    

 

III

Long-term Debts = Rs 1,00,000
Equity = Rs 2,50,000
Debt – Equity Ratio = Long-term Debts  
Equity
Debt – Equity Ratio = Rs. 1,00,000
Rs 2,50,000
  = 0.4 : 1


IV

Total Assets = Total Liabilities
Operating Cost = Current Liabilities + Paid-up Share Capital + 13% Debentures
  = Rs 1,40,000 + Rs 2,50,000 + Rs 1,00,000
  = Rs 4,90,000
Proprietary Ratio = Shareholders’ Fund
Total Assets
Proprietary Ratio = Rs. 2,50,000
Rs 4,90,000
  = 0.51 : 1


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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 142 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 141 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 141 Chapter 4 of +2-B

Question 141 Chapter 4 of +2-B

Miscellaneous

141Calculate following ratios on the basis of the given information:
(i)Current Ratio;
(ii)Acid Test Ratio;
(iii)Operating Ratio; and
(iv)Gross Profit Ratio.

  Rs    Rs
Current Assets 70,000 Revenue from Operations Sales 1,20,000
Current Liabilities 35,000 Operating Expenses 40,000
Inventory 30,000 Cost of Goods Sold or Cost of Revenue from Operations 60,000

 

 

The solution of Question 141 Chapter 4 of +2-B: –

I

Current Assets = Rs 70,000
Current Liabilities = Rs 35,000
Gross Profit Ratio = Current Assets
Current Liabilities
Gross Profit Ratio = Rs. 70,000
Rs. 70,000
  = 2 : 1

 

II

Liquid Assets = Current Assets − Inventory
  = Rs 70,000 − Rs 30,000
  = Rs 40,000
Acid Test Ratio = Liquid Assets
Current Liabilities
Acid Test Ratio = Rs. 40,000
Rs 35,000
  = 1.14 : 1


III

Net Sales = Rs 1,20,000
Operating Cost = Cost of Goods Sold + Operating Expenses
  = Rs 60,000 + Rs 40,000
  = Rs 1,00,000
Operating Ratio = Operating Cost X 100
Net Sales
Operating Ratio = Rs. 1,00,000 X 100
Rs 1,20,000
  = 83.33%    

 

IV

Gross Profit = Net Sales − Cost of Goods Sold
  = Rs 1,20,000 – Rs 60,000
  = Rs 60,000
Average Inventory = Rs 15,000
Gross Profit Ratio = Gross Profit X 100
Net Sales
Gross Profit Ratio = Rs 60,000 X 100
Rs 1,20,000
  = 50%    



Balance Sheet: Meaning, Format & Examples

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Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 141 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 140 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 140 Chapter 4 of +2-B

Question 140 Chapter 4 of +2-B

Miscellaneous

140. Calculate following ratios on the basis of the following information:
(i)Gross Profit Ratio;
(ii)Current Ratio;
(iii)Acid Test Ratio; and
(iv) Inventory Turnover Ratio.

  Rs   Rs
Gross Profit 50,000 Revenue from Operations 1,00,000
Inventory 15,000 Trade Receivables 27,500
Cash and Cash Equivalents  17,500 Current Liabilities 40,000

 

The solution of Question 140 Chapter 4 of +2-B: –

I

Gross Profit Ratio = Gross Profit X 100
Revenue from Operations
Gross Profit Ratio = Rs. 50,000 X 100
Rs 1,00,000
  = 50%    

II

Current Ratio = Current Assets
Current Liabilities
Current Assets = Inventory + Cash and Cash Equivalents + Trade Receivables
  = Rs 60,000
Current Liabilities = Rs 40,000

 

Current Ratio = Rs. 60,000
Rs 40,000
  = 1.5 : 1

 

III

Liquid Ratio = Liquid Assets
Current Liabilities
Liquid Assets = Cash and Cash Equivalents + Trade Receivables
  = Rs 17,500 + Rs 27,500
  = Rs 45,000
  = Rs 45,000
Rs 40,000
  = 1.125 : 1

IV

Inventory Turnover Ratio = Cost of Goods Sold
Average Inventory
Cost of Goods Sold = Revenue from Operations − Gross Profit
  = Rs 1,00,000 − Rs 50,000
  = Rs 50,000
Average Inventory = Rs 15,000
  = Rs 50,000
Rs 15,000
  = 3.33 Times



Balance Sheet: Meaning, Format & Examples

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Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 140 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 139 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 139 Chapter 4 of +2-B

Question 139 Chapter 4 of +2-B

Miscellaneous

139. From the following calculate:
(a) Current Ratio; and (b) Working Capital Turnover Ratio.

  Rs
i Revenue from Operations 1,50,000
ii Total Assets  1,00,000
iii Shareholders’ Funds  60,000
iv Non-current Liabilities 20,000
v Non-current Assets  50,000

 

The solution of Question 139 Chapter 4 of +2-B: –

 

Current Assets = Total Assets – Non Current Assets
  = Rs. 1,00,000 – Rs 50,000
  = Rs 50,000
Total Liabilities = Shareholders’ Funds + Non Current Liabilities + Current Liabilities
Rs 1,00,000 = Rs. 60,000 + Rs 20,000 + Current Liabilities
Current Liabilities = Rs 1,00,000 – Rs 80,000
  = Rs 20,000

 

Current Ratio = Current Assets
Current Liabilities
Current Ratio = Rs. 50,000
Rs 20,000
  = 2.5 : 1

 

Working Capital = Current Assets – Current Liabilities
  = Rs 50,000 − Rs 20,000
  = Rs 30,000
Working Capital Turnover Ratio = Revenue from Operations
Working Capital
  = Rs 1,50,000
Rs 30,000
  = 5 Times



 

Balance Sheet: Meaning, Format & Examples

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Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 139 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 138 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question No. 138 Chapter No.4 T.S. Grewal 2 Book Part B min 150x150 - Question 138 Chapter 4 of +2-B  - T.S. Grewal 12 Class

Question 138 Chapter 4 of +2-B

Miscellaneous

138. From the following information, calculate Inventory Turnover Ratio;
Operating Ratio and Working Capital Turnover Ratio:
Opening Inventory 28,000; Closing Inventory 22,000; Purchases 46,000;
Revenue from Operations, i.e., Net Sales 80,000; Return 10,000; Carriage
Inwards 4,000; Office Expenses 4,000; Selling and Distribution Expenses
2,000; Working Capital 40,000.

 

The solution of Question 138 Chapter 4 of +2-B: –

 

Cost of Goods Sold = Opening Inventory + Purchases + Carriage Inwards − Closing Inventory
  = Rs 28,000 + Rs 46,000 + Rs 4,000 – Rs 22,000
  = Rs. 56,000

 

Average Inventory = Opening Inventory + Closing Inventory
2
Current Ratio = Rs. 28,000 + Rs 22,000
2
  = Rs 25,000

 

Inventory Turnover Ratio = Cost of Goods Sold
Average Inventory
  = Rs. 56,000
Rs. 25,000
  = 2.24 Times

 

Operating Expenses = Office Expenses + Selling and Distribution Expenses
  = Rs 4,000 − Rs 2,000
  = Rs 6,000
Operating Cost = Cost of Goods Sold + Operating Expenses
  = Rs 56,000 + Rs 62,000
  = Rs 62,000
Operating Ratio = Operating Cost X 100
Net Sales
Operating Ratio = Rs 62,000 X 100
Rs 80,000
  = 77.5%    
Working Capital = Rs 40,000
Net Sales = Rs 80,000
Working Capital Turnover Ratio = Net Sales
Working Capital
  = Rs 80,000
Rs 40,000
  = 2 Times



 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 138 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements