# Question 63 Chapter 7 -Unimax Publication Class 12 Part 2 – 2021

Question No -63 Chapter no - 7 Unimax Class - 12 Part -II

Question 63 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

63. With the help of information given below calculate (1) Opening ratio, (2) Current ratio, (3) Stock turnover ratio, (4) Debt-equity ratio:

 Particulars ₹ Equity share capital 5,00,000 9% preference share capital 4,00,000 12% debentures 2,40,000 General reserve 40,000 Sales 8,00,000 Opening stock 48,000 Purchases 5,00,000 Wages 30,000 Closing stocks 52,000 Selling and distribution expenses 6,000 Other current assets 2,00,000 Current liabilities 1,50,000

## The solution of Question 63 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

 (I) C.O.G.S = opening stock + net purchases + direct expenses – closing stocks = 48,000 + 5,00,000 + 30,000 – 52,000 = 5,26,000 Operating cost = C.O.G.S. + operating expenses = 5,26,000 + 6,000 = 5,32,000
 Operating ratio = Operating cost X 100 Net sales
 = 5,32,000 X 100 8,00,000 = 66.5% Ans.
 (ii) Current Ratio = Current assets Current liabilities
 = 52,000 +2,00,000 1,50,000
 = 2,52,000 1,50,000 = 1.68 : 1 Ans.
 (iii) Average stock = Opening stock + Closing stock 2

 = 48,000 +52,000 2
 = 1,00,000 2
 = ₹ 50,000
 Stock turnover ratio = C.O.G.S Average stock
 = 5,26,000 50,000 = 10.52 times Ans.
 (iv) Debt equity ratio = long term debts shareholders funds
 = 2,40,000 5,00,000 +4,00,000 + 40,000
 = 2,40,000 9,40,000 = 0.255 : 1 Ans.

Comment if you have any Doubts.

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