Question 68 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021
Table of Contents
68. The following is the vertical profit and loss account M/s Mohan Brothers for the year ended on 31st December 2022:
Particulars | Amount(Dr.) | Amount(Cr.) |
Net sales | 30,00,000 | |
Less: cost of goods sold: | ||
Opening stock | 5,00,000 | |
Add: purchases | 20,00,000 | |
25,00,000 | ||
Less: closing stock | 7,00,000 | 18,00,000 |
Gross profit | 12,00,000 | |
Less: operating expenses | 4,80,000 | |
Operating profit | 7,20,000 | |
Less: interest charges | 1,80,000 | |
Profit before taxation | 5,40,000 |
Additional information as on 31-12-2022:
Current assets | ₹ 9,75,000 |
Current liabilities | ₹ 6,00,000 |
Fixed assets | ₹ 5,25,000 |
From the above particulars, calculate
1. Operating Ratio
2. Operating profit ratio
3. Stock turnover ratio
4. Return on capital employed
The solution of Question 68 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –
(i) Operating cost | = | C.O.G.S. + operating expenses |
= | 18,00,000+4,80,000 | |
= | ₹ 22,80,000 |
Operating ratio | = | Operating cost | X | 100 |
Net sales |
= | 22,80,000 | X | 100 | |
30,00,000 | ||||
= | ₹ 76% Ans. |
(ii) Operating Profit ratio | = | Operating Profit | x | 100 | |
Net sales |
= | 7,20,000 | x | 100 | |
30,00,000 | ||||
= | 24 %Ans. |
(iii) Average stock | = | Opening stock + Closing stock |
2 |
= | 5,00,000 +7,00,000 | |
2 |
|
= | 12,00,000 |
2 |
= | ₹ 6,00,000 |
Stock turnover ratio |
= | C.O.G.S |
Average stock |
|
= | 18,00,000 |
6,00,000 | ||
|
= | 3 times Ans. |
(iv) Capital employed | = | fixed assets + current assets – current liabilities |
= | 5,25,000 + 9,75,000 – 6,00,000 | |
= | ₹ 9,00,000 |
Return on capital employed | = | EBIT | X | 100 |
Capital employed |
Advertisement-Y
= | 7,20,000 | X | 100 | |
9,00,000 | ||||
= | 80 % Ans. |
Thanks, Please Like and share with your friends
Comment if you have any Doubts.
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
Leave a Reply