Question 103 Chapter 4 of +2-B

Question 103 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

103. (Current Ratio/Acid Test Ratio/Operating Ratio/GP Ratio) Calculate the following ratios, from the details given below :
(i) Current ratio ; (ii) Acid-test ratio ;
(iii) Operating ratio; and (iv) Gross profit ratio.
Details

 
Current assets 70,000
Current liabilities 35,000
Inventory30,000
Sales (Revenue from Operation) 1,20,000
Operating expenses 40,000
Cost of goods sold 60,000

 

The solution of Question 103 Chapter 4 of +2-B: – 

 

(i) Current Ratio=Current Assets
Current Liabilities
 = 
 =₹ 70,000
 ₹ 35,000
 =2 : 1
(ii) Acid test Ratio=Quick Assets
Current Liabilities
 = 
 =₹ 40,000
 ₹ 35,000
 =1.14 : 1

 

(iii) Operating Ratio=Operating CostX100
Net Sales
 =   
 =₹ 1,00,000X100
 ₹ 1,20,000
 =83.33%  

 

(iv) Gross Profit Ratio=Gross ProfitX100
Net Sales
 =   
 =₹ 60,000X100
 ₹ 1,20,000
 =50%  


Working Notes

Quick Assets=Current Assets – Inventory
 =₹ 70,000 – ₹ 30,000
 =₹ 40,000
Operating Cost=Cost of goods sold + Operating Expenses
 =₹ 60,000 + ₹ 40,000
 =₹ 1,00,000
Gross Profit=Sales – Cost of goods sold
 =₹ 1,20,000 – ₹ 60,000
 =₹ 60,000

 

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 103 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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