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)

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)

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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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