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Question 109 Chapter 4 of +2-B
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Table of Contents
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 assets | 6,00,000 |
| Current liabilities | 2,00,000 |
| 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 Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 10,00,000 | X | 100 | |
| ₹ 30,00,000 | ||||
| = | 33.33% |
| (ii) Net Profit Ratio | = | Net Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 3,00,000 | X | 100 | |
| ₹ 30,00,000 | ||||
| = | 10% |
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| (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
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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