Question 104 Chapter 4 of +2-B
Table of Contents
Miscellaneous (Analytical Questions)
104. (GP Ratio/Operating Profit Ratio/Current Ratio/Liquidity Ratio) From the following information related to the year ending 31s, March, 2018, Calculate the following ratios :
(i) Gross Profit ratio (ii) Operating Profit ratio
(iii) Current ratio (iv) Liquidity ratio
| ₹ | ₹ | ||
| Opening Inventories | 1,52,000 | Carriage inward | 4,000 |
| Purchases | 6,30,500 | Sales (Revenue from Operation) | 10,01,000 |
| Wages | 10,000 | Closing Inventories | 1,96,000 |
| Administrative Expenses | 2,02,000 | Non-operating income | 12,000 |
| Selling and Distribution Expenses | 24,000 | ||
| Financial Expenses | 4,000 |
| BALANCE SHEET | |
| (AS AT 31st MARCH, 2018) | |
| Particulars | ₹ |
| I. Equity and Liabilities | |
| Shareholders’ Funds | |
| Share Capital | |
| Equity Share Capital | 7,00,000 |
| Reserves and Surplus | |
| Balance of Profit and Loss (Profit for the current year) | 1,68,000 |
| Reserves | 12,000 |
| Current Liabilities | |
| Short-term Borrowings : | |
| Bank Overdraft | 7,000 |
| Trade Payable | 30,000 |
| 9,17,000 | |
| II. Assets : | |
| Non-Current Assets | |
| Tangible Assets | |
| Fixed Assets | 6,01,000 |
| Current Assets | |
| Inventory | 1,96,000 |
| Trade Receivable | 90,000 |
| Bank | 30,000 |
| 9,17,000 |
The solution of Question 104 Chapter 4 of +2-B: –
| (i) Gross Profit Ratio | = | Gross Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 4,00,000 | X | 100 | |
| ₹ 10,01,000 | ||||
| = | 39.96% |
| (ii) Operating Ratio | = | Operating Cost | X | 100 |
| Net Sales | ||||
| = | ₹ 1,60,000 | X | 100 | |
| ₹ 10,01,000 | ||||
| = | 15.98% |
| (iii) Current Ratio | = | Current Assets |
| Current Liabilities | ||
| = | ₹ 3,16,000 | |
| ₹ 37,000 | ||
| = | 8.54 : 1 |
| (iv) Liquidity Ratio | = | Liquid Assets |
| Current Liabilities | ||
| = | ||
| = | ₹ 1,20,000 | |
| ₹ 37,000 | ||
| = | 3.24 : 1 | |
| Gross Profit | = | Sales – Cost of goods sold |
| = | ₹ 10,01,000 – ₹ 6,01,000 | |
| = | ₹ 4,00,000 | |
| Cost of goods sold | = | Opening Inventory + Purchases + wages + carriage inward – closing inventory |
| = | ₹ 1,52,500 + ₹ 6,30,500 + ₹ 10,000 + ₹ 4,000 – ₹ 1,96,000 | |
| = | ₹ 6,01,000 | |
| Operating Profit | = | Net Profit + Non operating expenses – non-operating incomes |
| = | ₹ 1,68,000 + ₹ 4,000 – ₹ 12,000 | |
| = | ₹ 1,60,000 | |
| Liquidity Assets | = | Trade receivable + Bank |
| = | ₹ 90,000 + ₹ 30,000 | |
| = | ₹ 1,20,000 |
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 (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- 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
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
