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Question 142 Chapter 4 of +2-B
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Table of Contents
Miscellaneous
142. From the information given below, calculate any three of the following ratio:
(i)Gross Profit Ratio;
(ii) Working Capital Turnover Ratio:
(iii)Debt to Equity Ratio; and
(iv) Proprietary Ratio.
| Rs | Rs | ||
| Revenue from Operations Net Sales | 5,00,000 | Current Liabilities | 1,40,000 |
| Cost of Revenue from Operations (Cost of Goods Sold) | 3,00,000 | Paid-up Share Capital | 2,50,000 |
| Current Assets | 2,00,000 | 13% Debentures | 1,00,000 |
The solution of Question 142 Chapter 4 of +2-B: –
I
| Net Sales | = | Rs 5,00,000 |
| Cost of Goods Sold | = | Rs 35,000 |
| Gross Profit | = | Net Sales − Cost of Goods Sold |
| = | Rs 5,00,000 – Rs 3,00,000 | |
| = | Rs 2,00,000 |
| Gross Profit Ratio | = | Gross Profit | X | 100 |
| Net Sales |
| Gross Profit Ratio | = | Rs 2,00,000 | X | 100 |
| Rs 5,00,000 | ||||
| = | 40% | |||
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II
| 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% |
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III
| Long-term Debts | = | Rs 1,00,000 |
| Equity | = | Rs 2,50,000 |
| Debt – Equity Ratio | = | Long-term Debts | ||
| Equity | ||||
| Debt – Equity Ratio | = | Rs. 1,00,000 |
| Rs 2,50,000 | ||
| = | 0.4 : 1 |
IV
| Total Assets | = | Total Liabilities |
| Operating Cost | = | Current Liabilities + Paid-up Share Capital + 13% Debentures |
| = | Rs 1,40,000 + Rs 2,50,000 + Rs 1,00,000 | |
| = | Rs 4,90,000 |
| Proprietary Ratio | = | Shareholders’ Fund |
| Total Assets |
| Proprietary Ratio | = | Rs. 2,50,000 |
| Rs 4,90,000 | ||
| = | 0.51 : 1 |
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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)
- 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
