Question 108 Chapter 4 of +2-B

Question 108 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

108. (GP Ratio/Inventory T/O Ratio/Proprietary Ratio) The following are the Summarised Profit and Loss Account and the Balance Sheet of Ashoka Ltd.

STATEMENT OF PROFIT AND LOSS   
FOR THE YEAR. ENDING 31ST MARCH, 2018   
Particulars 
Revenue from Operations  2,20,000
Less: Expenses   
Purchases 1,25,000 
Change in Inventories (Opening Stock — Closing Stock) ( ₹ 20,000 – ₹ 10,000)10,000 
Direct Expenses15,000 
Salary 16,000 
Loss on Sale of Machinery4,0001,70,000
Net Profit  50,000

 

BALANCE SHEET  
(AS AT 31st MARCH, 2018)  
Particulars 
I. Equity and Liabilities 
Shareholders’ Funds 
Share Capital 
Equity Share Capital 1,50,000
Reserves and Surplus 
Surplus in Statement of Profit and Loss 50,000
Current Liabilities 
Trade Payable 75,000
Outstanding Expenses25,000
 3,00,000
II. Assets :  
Non-Current Assets  
Tangible Assets  
Land 2,00,000
Current Assets 
Inventory 10,000
Trade Receivable50,000
Bank 40,000
 3,00,000

 

The solution of Question 108 Chapter 4 of +2-B: – 

 

(i) Gross Profit Ratio=Gross ProfitX100
Net Sales
     
 =₹ 70,000X100
 ₹ 2,20,000
 =

31.8%

  

 

(ii) Inventory Turnover Ratio=Cost of goods sold
Average Inventory
   
 =₹ 1,50,000
 ₹ 15,000
 =10 times
(iii) Proprietary Ratio=Shareholders’ Funds
Total Assets
   
 =₹ 2,00,000
 ₹ 3,00,000
 =66.66%


Working Notes :

Gross Profit=Sales – Cost of goods sold
 =₹ 2,20,000 – ₹ 1,50,000
 =₹ 70,000
Cost of goods sold=Purchases + Direct Expenses – Change in inventory
 =₹ 1,25,000 + ₹ 15,000 + ₹ 10,000
 =₹ 1,50,000
Shareholders’ Funds=Equity Share Capital + Profit And Loss
 =₹ 1,50,000 + ₹ 50,000
 =₹ 2,00,000
Average Inventory=Opening Inventory + Closing Inventory
2
   
 =₹ 20,000 + ₹ 10,000
 2
 =₹ 15,000



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

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