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Question 137 Chapter 4 of +2-B
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Table of Contents
Miscellaneous
137. From the following information, calculate any two of the following ratios:
(i) Current Ratio;
(ii) Debt to Equity Ratio; and
(iii) Operating Ratio.
Revenue from Operations Net Sales Rs 1,00,000; cost of Revenue from Operations Cost of Goods Sold was 80% of sales; Equity Share Capital Rs 7,00,000; General Reserve 3.
The solution of Question 137 Chapter 4 of +2-B: –
I
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| Current Assets | = | Quick Assets + Closing Stock + Prepaid Expenses |
| = | Rs 6,00000 + Rs 50,000 + Rs 10,000 | |
| = | Rs. 6,60,000 |
| Current Ratio | = | Current Assets |
| Current Liabilities |
| Current Ratio | = | Rs. 6,60,000 |
| Rs. 4,00,000 | ||
| = | 1.65 : 1 |
II
| Long-term Debts | = | Rs 5,00,000 |
| Shareholder’s Funds | = | Equity Share Capital + General Reserve |
| = | Rs 7,00,000 − Rs 3,00,000 | |
| = | Rs 10,00,000 |
| Average Inventory | = | Long-term Debts |
| Equity |
| = | Rs 5,00,000 | |
| Rs 10,00,000 | ||
| = | 0.5 : 1 |
III
| Sales | = | Rs 1,00,000 |
| Cost of Goods Sold | = | Rs 80,000 |
| Operating Expenses | = | Rs 10,000 |
| = | Cost of Goods Sold + Operating Expenses | |
| = | Rs 80,000 + Rs 10,000 | |
| = | Rs 90,000 |
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| Operating Ratio | = | Operating Cost | X | 100 |
| Net Sales |
| Operating Ratio | = | Rs 90,000 | X | 100 |
| Rs 1,00,000 | ||||
| = | 90% |
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Balance Sheet: Meaning, Format & Examples
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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