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

Question 140 Chapter 4 of +2-B
Question No. 140- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 140 Chapter 4 of +2-B

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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 Profit50,000Revenue from Operations1,00,000
Inventory15,000Trade Receivables27,500
Cash and Cash Equivalents 17,500Current Liabilities40,000

 

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

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I

Gross Profit Ratio=Gross ProfitX100
Revenue from Operations
Gross Profit Ratio=Rs. 50,000X100
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

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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



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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)

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)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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