Question 105 Chapter 4 of +2-B – USHA Publication 12 Class

Question 105 Chapter 4 of +2-B

Question 105 Chapter 4 of +2-B

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

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

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