Question 105 Chapter 4 of +2-B
Table of Contents
Miscellaneous (Analytical Questions)
105. (GP Ratio/Debt Equity Ratio/WC T/O Ratio) From the following information calculate the
(a) Gross Profit Ratio (b) Debt Equity ratio (c) Working capital turnover Ratio
Information
| Particulars | ₹ | Particulars | ₹ |
| Net Sales (Revenue from Operation) | 5,65,000 | Current Assets | 3,25,000 |
| Cost of Goods sold (i.e. Cost of Revenue from Operation) | 3,75,000 | Equity share Capital | 3,95,000 |
| Current Liabilities | 1,75,000 | Debentures | 1,29,000 |
| Loan | 1,25,000 |
The solution of Question 105 Chapter 4 of +2-B: –
| (i) Gross Profit Ratio | = | Gross Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 1,90,000 | X | 100 | |
| ₹ 5,65,000 | ||||
| = | 33.62% |
| (ii) Debt Equity Ratio | = | Debt | X | 100 |
| Equity | ||||
| = | ₹ 2,54,000 | X | 100 | |
| ₹ 3,95,000 | ||||
| = | 0.64 : 1 |
| (iii) Working Capital Turnover Ratio | = | Sales |
| Working Capital | ||
| = | ₹ 5,65,000 | |
| ₹ 1,50,000 | ||
| = | 3.76 times |
| Gross Profit | = | Sales – Cost of goods sold |
| = | ₹ 5,65,000 – ₹ 3,75,000 | |
| = | ₹ 1,90,000 | |
| Debt | = | Debentures + Loan |
| = | ₹ 1,29,000 + ₹ 1,25,000 | |
| = | ₹ 2,54,000 | |
| Working Capital | = | Current Assets – Current Liabilities |
| = | ₹ 3,25,000 – ₹ 1,75,000 | |
| = | ₹ 1,50,000 |
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
