Question 142 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 142 Chapter 4 of +2-B

Question 142 Chapter 4 of +2-B

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%    
         

 

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%    

 

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)

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

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