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

Q-108- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

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 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: –

 (i) Gross Profit Ratio = Gross Profit X 100 Net Sales = ₹ 70,000 X 100 ₹ 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 x 100 ₹ 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 II – Solution

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