# Question 60 Chapter 7 -Unimax Publication Class 12 Part 2 – 2021

Question No -60 Chapter no - 7 Unimax Class - 12 Part -II

Question 60 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

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)

 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.

 (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

 = 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.

Comment if you have any Doubts.

Accounting Ratios – Meaning and Definition