Question 109 Chapter 4 of +2-B

Question 109 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

109. (GP Ratio/NP Ratio/WC T/O Ratio/Debt Equity Ratio) Following figures have been extracted from the books of Elite Electricals :

 
Net sales (Revenue from Operation) 30,00,000
Cost of goods sold (i.e. Cost of Revenue from Operation)20,00,000
Net profit  3,00,000
Current assets6,00,000
Current liabilities2,00,000
Paid-up share capital  5,00,000
Debentures 2,50,000

Compute any two ratios based on above figures :
(i) Gross profit ratio ; (ii) Net profit ratio ; (iii) Working capital turnover ratio; (iv) Debt equity ratio.

 

The solution of Question 109 Chapter 4 of +2-B: – 

 

(i) Gross Profit Ratio=Gross ProfitX100
Net Sales
     
 =₹ 10,00,000X100
 ₹ 30,00,000
 =

33.33%

  
(ii) Net Profit Ratio=Net ProfitX100
Net Sales
     
 =₹ 3,00,000X100
 ₹ 30,00,000
 =

10%

  

 

(iii) Working Capital Turnover Ratio=Net Sales
Net Working Capital
   
 =₹ 30,00,000
 ₹ 4,00,000
 =7.5 times
(iv) Debt Equity Ratio=Debt
Equity
   
 =₹ 2,50,000
 ₹ 8,00,000
 =2.5: 8


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
Shareholders’ Funds or Equity=Equity Share Capital + Net Profit
 =₹ 5,00,000 + ₹ 3,00,000
 =₹ 8,00,000



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

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