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

Q 104 CH 4 Book 2 Usha Pub. 2 Book 2020 Solution min 1024x576 - Question 104 Chapter 4 of +2-B  - USHA Publication  12 Class

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 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

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T.S. Grewal’s Analysis of Financial Statements

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