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 |
| = | 7,20,000 | X | 100 | |
| 9,00,000 | ||||
| = | 80 % 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
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