# Question 104 Chapter 4 of +2-B – USHA Publication 12 Class

Q-104- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 104 Chapter 4 of +2-B

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 II – Solution

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