Question 97 Chapter 4 of +2-B – USHA Publication 12 Class

Question 97 Chapter 4 of +2-B

Question 97 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

97. (Proprietary Ratio/Debt Equity Ratio)

BALANCE SHEET OF BHARAT RUBBER LTD. AS ON 31ST MARCH, 2018 
Particulars  
I. Equity and Liabilities  
Shareholders’ Funds  
Equity Share Capital 3,20,000
Subscribed and Paid up   
Reserves and Surplus   
Surplus in Statement of Profit and Loss Account 48,000
Reserves 1,00,000
Non-Current Liabilities  
 Long-term Borrowings  
9% Debentures 1,20,000
Current Liabilities  
Trade Payable 3,04,000
  8,92,000
II. Assets   
Non-Current Assets  
Tangible Assets  
Building  3,00,000
Machinery  60,000
Current Assets  
Inventory  1,76,000
Trade Receivable 3,28,000
Bank  28,000
  8,92,000

From the balance sheet given above, calculate the following ratios :
(i) Proprietary ratio (ii) Debt equity ratio

The solution of Question 97 Chapter 4 of +2-B: – 

 

(a) Proprietary Ratio = Proprietor’s funds
Total Assets
  =  
  = ₹ 4,68,000
  ₹ 8,92,000
  = 1.67: 1
(b) Debt Equity Ratio = Debt
Equity
  =  
  = ₹ 1,20,000
  ₹ 4,68,000
  = 0.26 : 1

Proprietor’s funds = Equity Share Capital + Surplus + Reserve
  = ₹ 3,20,000 + ₹ 48,000 + ₹ 1,00,000
  = ₹ 4,68,000
Debt = ₹ 1,22,000
Equity = Equity Share Capital + Surplus + Reserve
  = ₹ 3,20,000 + ₹ 48,000 + ₹ 1,00,000
  = ₹ 4,68,000


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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

  • Chapter No. 1 – Accounting Not for Profit Organisations

  • Chapter No. 2 – Partnership Accounts – I

  • Chapter No. 3 – Partnership Accounts – II (Introduction)

  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

  • Chapter No. 8 – Company Accounts (Share Capital)

  • Chapter No. 9 – Company Accounts (Issue of Debentures)

  • Chapter No. 10 – Company Accounts (Redemption of Debentures

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

  • Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

  • Chapter No. 2 – Techniques of Financial Statement Analysis

  • Chapter No. 3 – Ratio Analysis 

  • Chapter No. 4 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 97 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 96 Chapter 4 of +2-B – USHA Publication 12 Class

Question 96 Chapter 4 of +2-B

Question 96 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

96. (Operating Ratio/Quick Ratio/WC T/O Ratio) Calculate (a) Operating Ratio (b) Quick Ratio (c) Working Capital Turnover Ratio from the following information

   
Equity share capital 1,00,000 Purchases  1,20,000
8% Preference share capital  80,000 Wages  8,000
9% Debentures  60,000 Closing stock 18,000
General Reserve  10,000 Selling and distribution Expenses 2,000
Sales (Revenue from Operation)  2,00,000 Other current Assets 50,000
Opening Inventory  12,000 Current liabilities 30,000

 

 

 

 

The solution of Question 96 Chapter 4 of +2-B: – 

 

(a) Operating Ratio = Operating Cost X 100
Net Sales
  =      
  = ₹ 1,24,000 X 100
  ₹ 2,00,000
  = 62%    

 

(b) Quick Ratio = Quick Assets
Current Liabilities
  =  
  = ₹ 50,000
  ₹ 30,000
  = 1.67: 1
(c) Working Capital Turnover Ratio = Sales
Working Capital
     
  = ₹ 2,00,000
  ₹ 38,000
  = 5.26 times

 

Operating Cost = Cost of goods sold + Operating Expenses
Cost of goods sold = Opening Stock + Purchases + Direct Expenses – Closing Stock
  = ₹ 12,000 + ₹ 1,20,000 + ₹ 8,000 – ₹ 18,000
  = ₹ 1,22,000
     
Operating Cost = ₹ 1,22,000 + ₹ 2,000
  = ₹ 1,24,000


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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

  • Chapter No. 1 – Accounting Not for Profit Organisations

  • Chapter No. 2 – Partnership Accounts – I

  • Chapter No. 3 – Partnership Accounts – II (Introduction)

  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

  • Chapter No. 8 – Company Accounts (Share Capital)

  • Chapter No. 9 – Company Accounts (Issue of Debentures)

  • Chapter No. 10 – Company Accounts (Redemption of Debentures

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

  • Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

  • Chapter No. 2 – Techniques of Financial Statement Analysis

  • Chapter No. 3 – Ratio Analysis 

  • Chapter No. 4 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 96 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 95 Chapter 4 of +2-B – USHA Publication 12 Class

Question 95 Chapter 4 of +2-B

Question 95 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

95. (NP Ratio/Current Ratio/Debt Equity Ratio from a complete Balance sheet) Balance Sheet of ‘A’ Ltd. is given below :

Particulars 
I. Equity and Liabilities  
Shareholders’ Funds  
Equity Share Capital 4,000 Shares of 100 each fully paid   4,00,000
Reserves and Surplus  
Surplus in Statement of Profit and Loss (Current year profit after tax)  3,00,000
General Reserve 3,00,000
Non-Current Liabilities  
Long-term Borrowings  
15% Debentures  2,00,000
Current Liabilities  
Trade Payable 5,80,000
  17,80,000
II. Assets  
Non-Current Assets  
Tangible Assets  
Building  6,00,000
Machinery  1,20,000
Current Assets  
Inventory  3,50,000
Trade Receivable 6,50,000
Input CGST 25,000
Input SGST 25,000
Bank  10,000
  17,80,000

Additional Information :
Net sales (Revenue from Operation) for the current year ₹ 57,60,000
Calculate the following ratios :
(i) Net profit ratio, (ii) Current ratio,
(iii) Debt equity ratio.

 

The solution of Question 95 Chapter 4 of +2-B: – 

 

(i) Net Profit Ratio = Net Profit X 100
Net Sales
  =      
  = ₹ 3,00,000 X 100
  ₹ 57,60,000
  = 70%    

 

(ii) Current Ratio = Current Assets
Current Liabilities
  =  
  = ₹ 10,60,000
  ₹ 5,80,000
  = 1.83: 1
(iii) Debt equity Ratio = Debt
Equity
  =  
  = ₹ 2,00,000
  ₹ 10,00,000
  = 1: 5

 

Current Assets = Trade Receivable + Inventory + Input CGST + Input SGST + Bank
  = ₹ 6,50,000 + ₹ 3,50,000 + ₹ 25,000 + ₹ 25,000 + ₹ 10,000
  = ₹ 10,60,000
Current Liabilities = Trade Payable
  = ₹ 5,80,000
Debt = 15% Debentures
  = ₹ 2,00,000
Gross Profit = Equity Share Capital +Surplus in Statement of Profit and Loss + General Reserve
  = ₹ 4,00,000 + ₹ 3,00,000 + ₹ 3,00,000
  = ₹ 10,00,000


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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

  • Chapter No. 1 – Accounting Not for Profit Organisations

  • Chapter No. 2 – Partnership Accounts – I

  • Chapter No. 3 – Partnership Accounts – II (Introduction)

  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

  • Chapter No. 8 – Company Accounts (Share Capital)

  • Chapter No. 9 – Company Accounts (Issue of Debentures)

  • Chapter No. 10 – Company Accounts (Redemption of Debentures

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

  • Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

  • Chapter No. 2 – Techniques of Financial Statement Analysis

  • Chapter No. 3 – Ratio Analysis 

  • Chapter No. 4 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 95 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 94 Chapter 4 of +2-B – USHA Publication 12 Class

Question 94 Chapter 4 of +2-B

Question 94 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

94. (Current Ratio/Acid Test Ratio/Operating Ratio/GP Ratio) Calculate the following ratios, from the details given as under :
(i) Current ratio (ii) Acid test ratio
(iii) Operating ratio (iv) Gross profit ratio

 
Liquid assets 40,000
Current liabilities 20,000
Inventory  10,000
Sales (Revenue from Operation)  50,000
Operating expenses   15,000
Cost of goods sold (i.e. Cost of Revenue from Operation)  20,000

 

The solution of Question 94 Chapter 4 of +2-B: – 

 

(i) Current Ratio = Current Assets
Current Liabilities
  =  
  = ₹ 50,000
  ₹ 20,000
  = 2.5: 1
(ii) Acid Test Ratio = Liquid Assets
Current Liabilities
  =  
  = ₹ 40,000
  ₹ 20,000
  = 2: 1

 

 

(iii) Operating Ratio = Operating Cost X 100
Sales
  =      
  = ₹ 35,000 X 100
  ₹ 70,000
  = 70%    
(iv) Gross Profit Ratio = Gross Profit X 100
Sales
  =      
  = ₹ 30,000 X 100
  ₹ 50,000
  = 60%    

 

Current Assets = Liquid Assets + Stock
  = ₹ 40,000 + ₹ 10,000
  = ₹ 50,000
Current Liabilities = ₹ 20,000
Operating Cost = Cost of goods sold + Operating Expenses
  = ₹ 20,000 + ₹ 15,000
  = ₹ 35,000
Gross Profit = Sales – Cost of goods sold
  = ₹ 50,000 – ₹ 20,000
  = ₹ 30,000


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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

  • Chapter No. 1 – Accounting Not for Profit Organisations

  • Chapter No. 2 – Partnership Accounts – I

  • Chapter No. 3 – Partnership Accounts – II (Introduction)

  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

  • Chapter No. 8 – Company Accounts (Share Capital)

  • Chapter No. 9 – Company Accounts (Issue of Debentures)

  • Chapter No. 10 – Company Accounts (Redemption of Debentures

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

  • Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

  • Chapter No. 2 – Techniques of Financial Statement Analysis

  • Chapter No. 3 – Ratio Analysis 

  • Chapter No. 4 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 94 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 93 Chapter 4 of +2-B – USHA Publication 12 Class

Question 93 Chapter 4 of +2-B

Question 93 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

93. (Current Ratio/Operating Ratio) From the following data calculate :
(i) Current ratio, and (ii) Operating ratio

 
Trade Receivable 1,02,000
 Trade Payable 66,000
Inventory  15,000
Cash  10,000
Bank  5,000
Revenue from Operation 60,000
Operating expenses 12,000
Cost of goods sold i.e. Cost of Revenue from Operation 18,000

 

The solution of Question 93 Chapter 4 of +2-B: – 

 

(i) Current Ratio = Current Assets
Current Liabilities
  =  
  = ₹ 1,32,000
  ₹ 66,000
  = 2: 1
(ii) Operating Ratio = Operating Cost X 100
Sales
  =      
  = ₹ 30,000 X 100
  ₹ 60,000
  = 50%    

 

 

Current Assets = Trade Receivable + Stock + Cash + Bank
  = ₹ 1,02,000 + ₹ 15,000 + ₹ 10,000 + ₹ 5,000
  = ₹ ₹ 1,32,000
Current Liabilities = Trade Payable
  = ₹ 66,000
Operating Cost = Cost of goods sold + Operating Expenses
  = ₹ 18,000 + ₹ 12,000
  = ₹ 30,000

 

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

  • Chapter No. 1 – Accounting Not for Profit Organisations

  • Chapter No. 2 – Partnership Accounts – I

  • Chapter No. 3 – Partnership Accounts – II (Introduction)

  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

  • Chapter No. 8 – Company Accounts (Share Capital)

  • Chapter No. 9 – Company Accounts (Issue of Debentures)

  • Chapter No. 10 – Company Accounts (Redemption of Debentures

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

  • Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

  • Chapter No. 2 – Techniques of Financial Statement Analysis

  • Chapter No. 3 – Ratio Analysis 

  • Chapter No. 4 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 93 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 92 Chapter 4 of +2-B – USHA Publication 12 Class

Question 92 Chapter 4 of +2-B

Question 92 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

92. (Return on investment/Total Asset to Debt Ratio) From the following information calculate (a) Return on investment and (b) Total Assets to Debt Ratio Fixed Assets ₹ 15,00,000; Current Assets ₹ 8,00,000; Current Liabilities ₹ 5,40,000; 10% Public Deposits ₹ 16,00,000; Net Profit Before Interest Tax and dividend ₹ 2,90,000

The solution of Question 92 Chapter 4 of +2-B: – 

 

(a) Return on investment = Net profit before interest, Tax & Dividend X 100
Investment
  =      
  = ₹ 2,90,000 X 100
  ₹ 17,60,000
  = 16.48%    

 

(b) Total Assets to Debt Ratio = Total Assets
Long Term Debt
  =  
  = ₹ 23,00,000
  ₹ 16,00,000
  = 1.44: 1

 

Investment = Fixed Assets + Current Assets – Current Liabilities
  = ₹ 15,00,000 + ₹ 8,00,000 – 5,40,000
  = ₹ 17,60,000
Total Assets = Fixed Assets + Current Assets
  = ₹ 15,00,000 + ₹ 8,00,000
  = ₹ 23,00,000
Long Term debt = Public Deposits
  = ₹ 16,00,000

 

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

  • Chapter No. 1 – Accounting Not for Profit Organisations

  • Chapter No. 2 – Partnership Accounts – I

  • Chapter No. 3 – Partnership Accounts – II (Introduction)

  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

  • Chapter No. 8 – Company Accounts (Share Capital)

  • Chapter No. 9 – Company Accounts (Issue of Debentures)

  • Chapter No. 10 – Company Accounts (Redemption of Debentures

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

  • Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

  • Chapter No. 2 – Techniques of Financial Statement Analysis

  • Chapter No. 3 – Ratio Analysis 

  • Chapter No. 4 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 92 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 91 Chapter 4 of +2-B – USHA Publication 12 Class

Question 91 Chapter 4 of +2-B

Question 91 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

91. (GP Ratio/Debt Equity Ratio/WC T/O Ratio) Calculate (a) Gross Profit Ratio (b) Debt Equity Ratio (c) Working capital Turnover ratio
from the following information

   
Net Sales (Revenue from Operation)  3,75,000 Current Assets 4,25,000
Cost of goods sold (i.e. Cost of Revenue from Operation) 2,50,000  Equity Share Capital 1,90,000
Current liabilities 1,20,000 Debentures 75,000
Loan  60,000    

 

The solution of Question 91 Chapter 4 of +2-B: – 

 

(a) Gross Profit Ratio = Gross Profit X 100
Net Sales
  =      
  = ₹ 1,25,000 X 100
  ₹ 3,75,000
  = 33.33%    

 

(b) Debt Equity Ratio = Debt
Equity
  =  
  = ₹ 1,35,000
  ₹ 1,90,000
  = 0.71 : 1
(c) Working Capital Turnover Ratio = Net Sales
Working Capital
  =  
  = ₹ 2,50,000
  ₹ 3,05,000
  = 1.23 times

or

(c) Working Capital Turnover Ratio = Cost of goods sold
Working Capital
  =  
  = ₹ 2,50,000
  ₹ 3,05,000
  = 0.18 times

 

Gross Profit = Net Sales – Cost of goods sold
  = ₹ 3,75,000 – ₹ 2,50,000
  = ₹ 1,25,000
Debt = Loan + Debentures
  = ₹ 60,000 + ₹ 75,000
  = ₹ 1,35,000
Working Capital = Current Assets – Current Liabilities
  = ₹ 4,25,000 – ₹ 1,20,000
  = ₹ 3,05,000

 

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

  • Chapter No. 1 – Accounting Not for Profit Organisations

  • Chapter No. 2 – Partnership Accounts – I

  • Chapter No. 3 – Partnership Accounts – II (Introduction)

  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

  • Chapter No. 8 – Company Accounts (Share Capital)

  • Chapter No. 9 – Company Accounts (Issue of Debentures)

  • Chapter No. 10 – Company Accounts (Redemption of Debentures

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

  • Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

  • Chapter No. 2 – Techniques of Financial Statement Analysis

  • Chapter No. 3 – Ratio Analysis 

  • Chapter No. 4 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 91 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 90 Chapter 4 of +2-B – USHA Publication 12 Class

Question 90 Chapter 4 of +2-B

Question 90 Chapter 4 of +2-B

Earning Per Share, Dividend Per Share. Price Earning Ratio Not For PSEB Students)

90. The capital of a limited company is as follows :

 
10% preference shares of 10 each 2,00,000
Equity shares of 10 each  10,00,000
  12,00,000

Net profit after tax 4,20,000. Profit distributed as dividend 50%.
The market price of equity share is ₹ 35.

You are required to calculate
(i)Earning per share
(ii) Dividend per share
(iii) Price Earning Ratio

 

The solution of Question 90 Chapter 4 of +2-B: – 

 

Earnings per Share = Net profit after Interest and Tax Preference Dividend
Number of Equity Shares
  =  
  = ₹ 4,00,000
  1,00,000
  = ₹ 4
Dividend Per share = Profit distributed as equity share
Number of equity shares
  =  
  = ₹ 2,00,000
  1,00,000
  = ₹ 2

 

Price Earning Ratio = Market price per share
Earning per share
  =  
  = ₹ 35
  ₹ 4
  = 8.75 times

Preference Dividend = 10% Preference share    
  = 10 X ₹ 2,00,000
  100
  = ₹ 20,000    
Net profit preference Dividend = Profit after tax – Preference Dividend    
  = ₹ 4,20,000 – ₹ 20,000    
  = ₹ 4,00,000    

 

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

  • Chapter No. 1 – Accounting Not for Profit Organisations

  • Chapter No. 2 – Partnership Accounts – I

  • Chapter No. 3 – Partnership Accounts – II (Introduction)

  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

  • Chapter No. 8 – Company Accounts (Share Capital)

  • Chapter No. 9 – Company Accounts (Issue of Debentures)

  • Chapter No. 10 – Company Accounts (Redemption of Debentures

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

  • Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

  • Chapter No. 2 – Techniques of Financial Statement Analysis

  • Chapter No. 3 – Ratio Analysis 

  • Chapter No. 4 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 90 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 89 Chapter 4 of +2-B – USHA Publication 12 Class

Question 89 Chapter 4 of +2-B

Question 89 Chapter 4 of +2-B

Earning Per Share, Dividend Per Share. Price Earning Ratio Not For PSEB Students)

89. The capital of Everest Co. Ltd. is as follows :

 
9% Preference share of 10 each 3,00,000
Equity shares of 10 each 8,00,000
  11,00,000

The Accountant has ascertained the following information :

Profit after tax at 65% p.a.  2,70,000
 Equity dividend paid 20%  60,000
Market price per equity share  40

You are required to calculate the following
(i)Earning per share
(ii) Price Earning Ratio

 

The solution of Question 89 Chapter 4 of +2-B: – 

 

Earnings per Share = Net profit after Interest and Tax Preference Dividend
Number of Equity Shares
  =  
  = ₹ 2,43,000
  ₹ 80,000
  = ₹ 3.0375
Price Earning Ratio = Market price per share
Earning per share
  =  
  = ₹ 40
  ₹ 3.0375
  = 13.16 times

 

Preference Dividend = 9% Preference share    
  = 9 X ₹ 3,00,000
  100
  = ₹ 27,000    
Net profit preference Dividend = Profit after tax – Preference Dividend    
  = ₹ 2,70,000 – ₹ 27,000    
  = ₹ 2,43,000    

 

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

  • Chapter No. 1 – Accounting Not for Profit Organisations

  • Chapter No. 2 – Partnership Accounts – I

  • Chapter No. 3 – Partnership Accounts – II (Introduction)

  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

  • Chapter No. 8 – Company Accounts (Share Capital)

  • Chapter No. 9 – Company Accounts (Issue of Debentures)

  • Chapter No. 10 – Company Accounts (Redemption of Debentures

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

  • Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

  • Chapter No. 2 – Techniques of Financial Statement Analysis

  • Chapter No. 3 – Ratio Analysis 

  • Chapter No. 4 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 89 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Question 88 Chapter 4 of +2-B – USHA Publication 12 Class

Question 88 Chapter 4 of +2-B

Question 88 Chapter 4 of +2-B

Price Earning Ratio (Not For PSEB Students)

88. From the following details supplied by XYZ Ltd.
Calculate price earning ratio
Market price per share ₹ 100
Earning per share ₹ 10 

 

The solution of Question 88 Chapter 4 of +2-B: – 

 

Price Earning Ratio = Market price per share
Earning per share
  =  
  = ₹ 100
  ₹ 10
  = ₹ 10

 

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

  • Chapter No. 1 – Accounting Not for Profit Organisations

  • Chapter No. 2 – Partnership Accounts – I

  • Chapter No. 3 – Partnership Accounts – II (Introduction)

  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

  • Chapter No. 8 – Company Accounts (Share Capital)

  • Chapter No. 9 – Company Accounts (Issue of Debentures)

  • Chapter No. 10 – Company Accounts (Redemption of Debentures

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

  • Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

  • Chapter No. 2 – Techniques of Financial Statement Analysis

  • Chapter No. 3 – Ratio Analysis 

  • Chapter No. 4 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 88 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements