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Question 119 Chapter 4 of +2-B
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Miscellaneous (Analytical Questions)
119. (Operating Ratio/Liquid Ratio/Proprietary Ratio) From the following information calculate the
(a) Operating ratio (b) Liquid Ratio (c) Proprietary Ratio Information :
Cash Sales (Revenue from Operation) ₹ 4,00,000, Credit Sales ₹ 2,75,000. Sales Returns ₹ 27,000 Cost of Revenue from operation ₹ 3,90,000. Selling and Distribution Expenses ₹ 7,000. Administration Expenses ₹ 3,000. Current Liabilities ₹ 1,95,000. Current Assets ₹ 3,94,000. Closing Inventories ₹ 23,000. Equity share capital ₹ 4,37,000. 6% Preference share capital ₹ 1,74,000. Fixed Assets ₹ 4,30,000.
The solution of Question 119 Chapter 4 of +2-B: –
(i) Operating Ratio | = | Operating Cost | X | 100 |
| Net Sales | ||||
| = | ₹ 4,00,000 | X | 100 | |
| ₹ 6,48,000 | ||||
| = | 61.72% |
(ii) Liquid Ratio | = | Quick Assets |
| Current Liabilities | ||
| = | ₹ 3,71,000 | |
| ₹ 1,95,000 | ||
| = | 1.9: 1 |
| (iii) Proprietary Ratio | = | Shareholder’s Fund |
| Total Assets | ||
| = | ₹ 6,11,000 | |
| ₹ 8,24,000 | ||
| = | 0.74: 1 |
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Working Notes:-
| Net Sales | = | Cash sales + Credit Sales – Sales Return |
| = | ₹ 4,00,000 + ₹ 2,75,000 – ₹ 27,000 | |
| = | ₹ 6,48,000 | |
| Quick Assets | = | Current Assets – Stock |
| = | ₹ 3,94,000 – ₹ 23,000 | |
| = | ₹ 3,71,000 | |
| Shareholder’s Fund | = | Equity Share Capital + Preference Share Capital |
| = | ₹ 4,37,000 + ₹ 1,74,000 | |
| = | ₹ 6,11,000 | |
| Total Assets | = | Current Assets + Fixed Assets |
| = | ₹ 3,94,000 + ₹ 4,30,000 | |
| = | ₹ 8,24,000 |
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
