# Question 67 Chapter 7 -Unimax Publication Class 12 Part 2 – 2021

Question No -67 Chapter no - 7 Unimax Class - 12 Part -II

Question 67 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

67. The following is the balance sheet of Simran Mills Ltd. As on 31st December 2022.

 Liabilities Amount Assets Amount Sundry creditors 60,000 Bank 50,000 Bills payable 1,00,000 Trade investments 1,50,000 Tax provision 1,30,000 Sundry debtors 2,00,000 Outstanding expenses 10,000 Stock 3,00,000 12% debentures 7,00,000 Fixed assets 18,00,000 10% preference shares 1,00,000 Less: depreciation -5,00,000 Equity shares 4,00,000 Reserve fund 4,00,000 20,00,000 20,00,000

Other information supplied n as follows:

 Particulars Amount (a) net sales 30,00,000 (b) cost of goods sold 25,80,000 (c) net income before tax 2,00,000 (d) net income after tax 1,00,000

You are required to calculate:
(1) quick ratio, (2) current ratio, (3) gross profit ratio, (4) net profit ratio

## The solution of Question 67 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

 (i) Quick Ratio = Quick assets Current liabilities
 = 50,000+1,50,000+2,00,000 60,000+1,00,000+10,000+1,30,000
 = 4,00,000 3,00,000 = 1.33 : 1 Ans.
 (ii) Current Ratio = Current assets Current liabilities
 = 50,000+1,50,000+2,00,000+3,00,000 60,000+1,00,000+10,000+1,30,000
 = 7,00,000 3,00,000 = 2.33 : 1 Ans.

 (iii) G.P = Net sales – C.O.G.S = 30,00,000 – 25,80,000 = 4,20,000
 G.P. ratio = G.P. X 100 Net sales
 = 4,20,000 X 100 30,00,000 = 14% Ans.
 (iv) Net profit ratio = Net Profit x 100 Net Sales = 3.33% Ans.

Comment if you have any Doubts.

Accounting Ratios – Meaning and Definition