Question 140 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 140 Chapter 4 of +2-B

Question 140 Chapter 4 of +2-B

Miscellaneous

140. Calculate following ratios on the basis of the following information:
(i)Gross Profit Ratio;
(ii)Current Ratio;
(iii)Acid Test Ratio; and
(iv) Inventory Turnover Ratio.

  Rs   Rs
Gross Profit 50,000 Revenue from Operations 1,00,000
Inventory 15,000 Trade Receivables 27,500
Cash and Cash Equivalents  17,500 Current Liabilities 40,000

 

The solution of Question 140 Chapter 4 of +2-B: –

I

Gross Profit Ratio = Gross Profit X 100
Revenue from Operations
Gross Profit Ratio = Rs. 50,000 X 100
Rs 1,00,000
  = 50%    

II

Current Ratio = Current Assets
Current Liabilities
Current Assets = Inventory + Cash and Cash Equivalents + Trade Receivables
  = Rs 60,000
Current Liabilities = Rs 40,000

 

Current Ratio = Rs. 60,000
Rs 40,000
  = 1.5 : 1

 

III

Liquid Ratio = Liquid Assets
Current Liabilities
Liquid Assets = Cash and Cash Equivalents + Trade Receivables
  = Rs 17,500 + Rs 27,500
  = Rs 45,000
  = Rs 45,000
Rs 40,000
  = 1.125 : 1

IV

Inventory Turnover Ratio = Cost of Goods Sold
Average Inventory
Cost of Goods Sold = Revenue from Operations − Gross Profit
  = Rs 1,00,000 − Rs 50,000
  = Rs 50,000
Average Inventory = Rs 15,000
  = Rs 50,000
Rs 15,000
  = 3.33 Times



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)

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

2 Book 3 min 225x300 - Question 140 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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