Question 108 Chapter 4 of +2-B - USHA Publication 12 Class

Question 108 Chapter 4 of +2-B

Table of Contents

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 Expenses	15,000
Salary	16,000
Loss on Sale of Machinery	4,000	1,70,000
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 Expenses	25,000
	3,00,000
II. Assets :
Non-Current Assets
Tangible Assets
Land	2,00,000
Current Assets
Inventory	10,000
Trade Receivable	50,000
Bank	40,000
	3,00,000

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

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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