# Question 53 Chapter 7 -Unimax Publication Class 12 Part 2 – 2021

Question No -53 Chapter no - 7 Unimax Class - 12 Part -II

Question 53 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

53. The following is the balance sheet of Y Ltd. As an 31st December 2022.

 Liabilities Amount Assets Amount Equity share capital 2,00,000 Land and building 1,50,000 Reserves 90,000 Plant and machinery 80,000 Profit for the year 60,000 Stock 1,40,000 Bank overdraft 30,000 Debtors 80,000 Trade creditors 1,00,000 Cash 30,000 4,80,000 4,80,000

Calculate (1) Quick ratio, (2) Return on investment ratio

## The solution of Question 53 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

 (I) Quick ratio = Quick assets Current liabilities
 = 80,000 +30,000 30,000+1,00,000
 = 1,10,000 1,30,000 = 0.846 : 1 Ans.
 (ii) Earning before tax and interest = 60,000 (EBIT) Capital employed = fixed assets + current assets – current liabilities = 1,50,000 + 80,000 + 1,40,000 + 80,000 + 30,000 – 30,000 – 1,00,000 = 3,50,000
 Return on investment ratio = EBIT x 100 Capital employed
 = 60,000 x 100 3,50,000 = 17.14 % Ans.

Comment if you have any Doubts.

Accounting Ratios – Meaning and Definition