# Question 116 Chapter 4 of +2-B – USHA Publication 12 Class

Q-116- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

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 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 II – Solution

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