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Question 60 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021
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60. Following is the trading and profit and account and balance sheet of Expo Corporation for the year endingn31st December 2022.
TRADING AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDING 31ST DECEMBER 2022
| Particulars | Amount | Particulars | Amount |
| To opening stock | 1,52,500 | By sales | 10,01,000 |
| To purchases | 6,30,500 | By stock | 1,96,000 |
| To carriage inward | 4,000 | ||
| To wages | 10,000 | ||
| To Gross Profit c/d | 4,00,000 | ||
| 11,97,000 | 11,97,000 | ||
| To administrative expenses | 2,02,000 | By Gross Profit b/d | 4,00,000 |
| To selling and distribution expenses | 24,000 | By non-operating income | 12,000 |
| To finance expenses | 14,000 | ||
| To non-operating expenses | 4,000 | ||
| To net profit | 1,68,000 | ||
| 4,12,000 | 4,12,000 |
BALANCE SHEET
(AS ON 31ST DECEMBER, 2022)
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| Liabilities | Amount | Assets | Amount |
| Share capital | 7,00,000 | Fixed assets | 6,01,000 |
| Reserves | 12,000 | Stock | 1,96,000 |
| Profit & loss a/c | 1,68,000 | Debtors | 90,000 |
| Overdraft | 7,000 | Bank | 30,000 |
| Creditors | 30,000 | ||
| 9,17,000 | 9,17,000 |
Calculate the following ratios:
1. Gross profit ratio
2. Current ratio
3. Liquidity ratio
4. Operating ratio
5. Debtor’s turnover ratio
6. Inventory turnover ratio
The solution of Question 60 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –
| (i) G.P. Ratio | = | G.P. | X | 100 |
| Net Sales |
| = | 4,00,000 | X | 100 | |
| 10,01,000 | ||||
| = | 39.96% Ans. |
| (ii) Current Ratio | = | Current asses |
| Current liabilities |
| = | 1,96,000 +90,000 +30,000 | |
| 7,000 +30,000 |
|
|
= | 3,16,000 |
| 37,000 | ||
|
|
= | 8.54 : 1 Ans. |
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|
(iii) Liquidity ratio |
= | liquidity assets |
| current liabilities |
|
|
= | 90,000 +30,000 |
| 7,000 + 30,000 |
|
|
= | 1,20,000 |
| 37,000 | ||
|
|
= | 3.24 : 1 Ans. |
| (IV) C.O.G.S | = | opening stock + net purchases + direct taxes – closing stocks |
| = | 1,52,000 + 6,30,500 + 14,000 – 1,96,000 | |
| = | 6,01,000 | |
| Operating cost | = | C.O.G.S. + operating expenses |
| = | 6,01,000 + 2,02,000 + 24,000 + 14,000 | |
| = | 8,41,000 |
| Operating Ratio | = | Operating cost | x | 100 |
| Net sales |
| = | 8,41,000 | x | 100 | |
| 10,01,000 | ||||
| = | 84.02 % Ans. |
|
(V) Debtors’ turnover ratio |
= | Net credit sales |
| Accounts receivable |
|
|
= | 10,01,000 |
| 90,000 | ||
|
|
= | 11.12 times Ans. |
|
(VI) Average stock |
= | Opening stock + Closing stock |
| 2 |
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|
|
= | 1,52,500 +1,96,000 |
| 2 |
|
|
= | 3,48,500 |
| 2 | ||
|
|
= | ₹ 1,74,250 Ans. |
|
Inventory turnover ratio |
= | C.O.G.S |
| Average stock |
|
|
= | 6,01,000 |
| 1,74,250 | ||
|
|
= | 3.449 times Ans. |
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Accounting Ratios – Meaning and Definition
Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit sharing ratio among Existing Partners )
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Company Accounts (Issue of Debentures)
- Chapter No. 3 – Company Accounts (Redemption of Debentures)
- Chapter No. 4 – Financial Statements of a Company
- Chapter No. 5 – Financial Statement Analysis
- Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2023@ Official Website of Sultan Chand Publication
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