Question 116 Chapter 4 of +2-B
Table of Contents
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 Sold | 2,40,400 | |
| (Opening Inventory + Purchases + Direct Expenses – Closing Inventory) | ||
| (₹ 61,000 + ₹ 2,52,200 + ₹ 5,600 – ₹ 78,400) | ||
| Administrative Expenses | 80,800 | |
| Selling & Distribution Expenses | 9,600 | |
| Financial Expenses | 5,600 | |
| Other Non-Operating Expenses | 1,600 | 3,38,000 |
| Net Profit | 67,200 |
| BALANCE SHEET | |
| Particulars | ₹ |
| I. Equity and Liabilities | |
| Shareholders’ Funds | |
| Equity Share Capital – Paid up | 2,00,000 |
| Preference Share Capital | 80,000 |
| Reserves and Surplus | |
| General Reserve | 4,800 |
| Surplus in Statement of Profit and Loss | 67,200 |
| Current Liabilities | |
| Short-term Borrowings | |
| Bank Overdraft | 2,800 |
| Trade Payable | 4,000 |
| Other Current Liabilities | |
| Output IGST | 8,000 |
| 3,66,800 | |
| II. Assets : | |
| Non-Current Assets | |
| Land and Building | 2,00,000 |
| Plant and Machinery | 40,400 |
| Current Assets | |
| Inventory | 78,400 |
| Trade Receivable | 36,000 |
| 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 Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 1,60,000 | X | 100 | |
| ₹ 4,00,400 | ||||
| = | 39.96% |
| (ii) Current Ratio | = | Current Assets |
| Current Liabilities | ||
| = | ₹ 1,26,400 | |
| ₹ 14,800 | ||
| = | 8.54 : 1 |
| (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
- 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
