Question 141 Chapter 4 of +2-B
Table of Contents
Miscellaneous
141Calculate following ratios on the basis of the given information:
(i)Current Ratio;
(ii)Acid Test Ratio;
(iii)Operating Ratio; and
(iv)Gross Profit Ratio.
| Rs | Rs | ||
| Current Assets | 70,000 | Revenue from Operations Sales | 1,20,000 |
| Current Liabilities | 35,000 | Operating Expenses | 40,000 |
| Inventory | 30,000 | Cost of Goods Sold or Cost of Revenue from Operations | 60,000 |
The solution of Question 141 Chapter 4 of +2-B: –
I
| Current Assets | = | Rs 70,000 |
| Current Liabilities | = | Rs 35,000 |
| Gross Profit Ratio | = | Current Assets |
| Current Liabilities |
| Gross Profit Ratio | = | Rs. 70,000 |
| Rs. 70,000 | ||
| = | 2 : 1 |
II
| Liquid Assets | = | Current Assets − Inventory |
| = | Rs 70,000 − Rs 30,000 | |
| = | Rs 40,000 |
| Acid Test Ratio | = | Liquid Assets |
| Current Liabilities |
| Acid Test Ratio | = | Rs. 40,000 |
| Rs 35,000 | ||
| = | 1.14 : 1 |
III
| Net Sales | = | Rs 1,20,000 |
| Operating Cost | = | Cost of Goods Sold + Operating Expenses |
| = | Rs 60,000 + Rs 40,000 | |
| = | Rs 1,00,000 |
| Operating Ratio | = | Operating Cost | X | 100 |
| Net Sales |
| Operating Ratio | = | Rs. 1,00,000 | X | 100 |
| Rs 1,20,000 | ||||
| = | 83.33% |
IV
| Gross Profit | = | Net Sales − Cost of Goods Sold |
| = | Rs 1,20,000 – Rs 60,000 | |
| = | Rs 60,000 | |
| Average Inventory | = | Rs 15,000 |
| Gross Profit Ratio | = | Gross Profit | X | 100 |
| Net Sales |
| Gross Profit Ratio | = | Rs 60,000 | X | 100 |
| Rs 1,20,000 | ||||
| = | 50% |
Balance Sheet: Meaning, Format & Examples
Advertisement-X
Thanks, Please Like and share with your friends
Comment if you have any question.
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
Advertisement-Y