Question 141 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 141 Chapter 4 of +2-B

Question 141 Chapter 4 of +2-B

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

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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 141 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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