Question 114 Chapter 4 of +2-B
Table of Contents
Miscellaneous (Analytical Questions)
114. (GP Ratio/Inventory T/O Ratio/Trade Receivable T/O Ratio/Net Profit Ratio) The following information is given about a company :
| ₹ | |
| Sales (Revenue from Operation) | 4,00,000 |
| Gross profit | 10,000 |
| Cost of goods sold (i.e. Cost of Revenue from Operations) | |
| Opening Inventory | |
| Closing Inventory | 20,000 |
| Trade Receivable | 1,00,000 |
| Net profit | 3,000 |
| Net fixed assets | 60,000 |
From the above information, calculate the following ratios : (i) Gross profit ratio. (ii) Inventory turnover ratio. (iii) Trade Receivable turnover ratio. (iv) Net profit ratio.
The solution of Question 114 Chapter 4 of +2-B: –
| (i) Inventory Turnover Ratio | = | Cost of goods sold |
| Average Inventory | ||
| = | ₹ 1,20,000 | |
| ₹ 30,000 | ||
| = | 4 times |
|
(ii) Gross Profit Ratio |
= | Gross Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 30,000 | X | 100 | |
| ₹ 1,50,000 | ||||
| = | 20% |
| (iii) Trade Receivables Turnover Ratio | = | Net Sales |
| Average Trade Receivable | ||
| = | ₹ 1,50,000 | |
| ₹ 16,000 | ||
| = | 9.375 times |
|
(iv) Net Profit Ratio |
= | Net Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 14,000 | X | 100 | |
| ₹ 1,50,000 | ||||
| = | 9.33% |
Working Notes :-
| Average Inventory | = | Opening Inventory + Closing Inventory |
| 2 | ||
| = | ₹ 29,000 + ₹ 31,000 | |
| 2 | ||
| = | ₹ 30,000 |
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
