Question 107 Chapter 4 of +2-B – USHA Publication 12 Class

Question 107 Chapter 4 of +2-B

Question 107 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

107. (GP Ratio/WC T/O Ratio/Debt Equity Ratio) On the basis of following information, calculate (i) Gross Profit Ratio, (ii) Working Capital Turnover Ratio, (iii) Debt Equity Ratio
Net Sales (Revenue from Operations) ₹ 30,00,000; Cost of Goods Sold (i.e. Cost of Revenue from Operations) ₹ 20,00,000; Current Assets ₹ 6,00,000; Current Liabilities ₹ 2,00,000 Paid-up Share Capital ₹ 5,00,000; Debentures ₹ 2,50,000; Loan ₹ 1,25,000.

The solution of Question 107 Chapter 4 of +2-B: – 

 

(i) Gross Profit Ratio = Gross Profit X 100
Net Sales
         
  = ₹ 10,00,000 X 100
  ₹ 30,00,000
  = 33.33%    

 

(ii) Working Capital Turnover Ratio = Sales
Working Capital
     
  = ₹ 30,00,000
  ₹ 4,00,000
  = 7.5 times
(iii) Debt Equity Ratio = Debt
Equity
     
  = ₹ 3,75,000
  ₹ 5,00,000
  = 0.75: 1


Working Notes :

Gross Profit = Sales – Cost of goods sold
  = ₹ 30,00,000 – ₹ 20,00,000
  = ₹ 10,00,000
Working Capital = Current Assets – Current Liabilities
  = ₹ 6,00,000 – ₹ 2,00,000
  = ₹ 4,00,000
Debt = Debentures + Loan
  = ₹ 2,50,000 + ₹ 1,25,000
  = ₹ 3,75,000



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

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