Question 100 Chapter 4 of +2-B – USHA Publication 12 Class

Question 100 Chapter 4 of +2-B

Question 100 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

100. (GP Ratio/WC/T/0 Ratio/Debt Equity Ratio/Proprietary Ratio) From the information given below, calculate any three of the following ratios :
(i) Gross Profit Ratio, (ii) Working Capital Turnover Ratio, (iii) Debt-Equity Ratio, (iv) Proprietary Ratio.
Information :
Revenue from Operation ₹ 5,00,000 ; Cost of Revenue from Operation ₹ 3,00,000 ; Current Assets ₹ 2,00,000; Current Liabilities ₹ 1,40,000 ; Paid-up Share Capital ₹ 2,50,000; 13% Debentures ₹ 1,00,000.

 

The solution of Question 100 Chapter 4 of +2-B: – 

 

(a) Gross Profit Ratio = Gross Profit X 100
Net Sales
  =      
  = ₹ 2,00,000 X 100
  ₹ 5,00,000
  = 40%    

 

(ii) Working Capital Turnover Ratio = Net Sales
Working Capital
  =  
  = ₹ 5,00,000
  ₹ 60,000
  = 8.33 times
(iii) Debt Equity Ratio = Long Term Debts
Shareholders Funds
  =  
  = ₹ 1,00,000
  ₹ 2,50,000
  = 0.4: 1

 

(iv) Proprietary Ratio = Proprietor’s Funds
Total Assets
  =  
  = ₹ 2,50,000
  ₹ 4,90,000
  = 51%
Gross Profit = Net Sales – Cost of goods sold
  = ₹ 5,00,000 – ₹ 3,00,000
  = ₹ 2,00,000
Working Capital = Current Assets – Current Liabilities
  = ₹ 2,00,000 – ₹ 1,40,000
  = ₹ 60,000
Total Assets = Share capital + Current Liabilities + 13% Debentures
  = ₹ 2,50,000 + ₹ 1,40,000 + ₹ 1,00,000
  = ₹ 4,90,000


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

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

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

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

2 Book 3 min 225x300 - Question 100 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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