Question 116 Chapter 4 of +2-B

Question 116 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

116. (GP Ratio/Current Ratio/Liquid Ratio) Following is the Profit and Loss Account and Balance Sheet of New Company Ltd. for the year ending 31st March, 2018.

STATEMENT OF PROFIT AND LOSS   
Particulars 
Revenue from Operations (Sales)  4,00,400
Add Other Income   
Non-Operating Income  4,800
Total Revenue  4,05,200
Less : Expenses  
Cost of Goods Sold2,40,400 
(Opening Inventory + Purchases + Direct Expenses – Closing Inventory)  
(₹ 61,000 + ₹ 2,52,200 + ₹ 5,600 – ₹ 78,400)    
Administrative Expenses80,800 
Selling & Distribution Expenses9,600 
Financial Expenses5,600 
Other Non-Operating Expenses 1,6003,38,000
Net Profit  67,200

 

BALANCE SHEET  
Particulars 
I. Equity and Liabilities 
Shareholders’ Funds 
Equity Share Capital – Paid up2,00,000
Preference Share Capital80,000
Reserves and Surplus 
General Reserve4,800
Surplus in Statement of Profit and Loss 67,200
Current Liabilities 
Short-term Borrowings 
Bank Overdraft2,800
Trade Payable4,000
 Other Current Liabilities  
Output IGST8,000
 3,66,800
II. Assets :  
Non-Current Assets  
Land and Building2,00,000
Plant and Machinery 40,400
Current Assets 
Inventory 78,400
Trade Receivable36,000
Bank 10,000
Cash 2,000
 3,66,800

Calculate the following ratio : (i) Gross profit ratio (ii) Current ratio (iii) Liquidity ratio.

The solution of Question 116 Chapter 4 of +2-B: – 

 

(i) Gross Profit Ratio

=Gross ProfitX100
Net Sales
     
 =₹ 1,60,000X100
 ₹ 4,00,400
 =39.96%  
(ii) Current Ratio=Current Assets
Current Liabilities
   
 =₹ 1,26,400
 ₹ 14,800
 =8.54: 

 

(iii) Liquid Ratio=Liquid Assets
Current Liabilities
   
 =₹ 48,000
 ₹ 14,800
 =3.24: 1

 

Working Notes :-

Gross Profit=Sales – Cost of goods sold
 =₹ 4,00,400 – ₹ 2,40,400
 =₹ 1,60,000
Current Assets=Inventory + Trade Receivable + Bank + Cash
 =₹ 78,400 + ₹ 36,000 + ₹ 10,000 + ₹ 2,000
 =₹ 1,26,400
Current Liabilities=Bank overdraft + Trade Payable + Output IGST
 =₹ 2,800 + ₹ 4,000 + ₹ 8,000
 =₹ 14,800
Liquid Assets=Trade Receivable + Bank + Cash
 =₹ 36,000 + ₹ 10,000 + ₹ 2,000
 =₹ 48,000


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

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