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Question 72 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021
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With the help of the given information calculate the following ratios:
(I) operating ratio, (ii) quick ratio, (iii) working capital turnover ratio and (iv) debt to total funds ratio.
Information. Equity share capital 1,00,000 ; 12% preference share capital 80,000 ; 12% debentures 60,000 ; general reserve 40,000 ; sale 3,00,000 ; opening stock 10,000 ; purchases 1,20,000 ; wages 30,000 ; closing stock 30,000 ; selling and distribution expenses 10,000 ; other current assets 2,00,000 and current liabilities 1,20,000.
The solution of Question 72 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –
| (I) Quick ratio | = | quick assets |
| current liabilities |
| = | 2,00,000 | |
| 1,20,000 | ||
| = | 1.67 : 1 Ans. |
| (ii) C.O.G.S. | = | opening stock + net purchases + direct expenses – closing stocks |
| = | 10,000 + 1,20,000 + 30,000 – 30,000 | |
| = | 1,30,000 | |
| Operating cost | = | C.O.G.S. + operating expenses |
| = | 1,30,000 + 10,000 | |
| = | ₹ 1,40,000 |
| Operating ratio | = | operating cost | x | 100 | |
| Net sales | |||||
| = | 1,40,000 | x | 100 | |
| 3,00,000 | ||||
| = | 46.67 % Ans. |
| (iii) working capital | = | current assets – current liabilities |
| = | 2,00,000 + 30,000 – 1,20,000 | |
| = | 1,10 000 |
| Working capital | = | Net sales |
| working capita |
| Turnover Ratio | = | 3,00,000 |
| 1,10,000 | ||
| = | 2.73 times Ans. |
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| (iv) long term debts to total funds ratio | = | long term debts |
| long term funds |
| = | 60,000 |
| 1,00,000 + 80,000 +60,000+ 40,000 |
| = | 60,000 |
| 2,80,000 | ||
| = | 0.214 : 1 Ans. |
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Accounting Ratios – Meaning and Definition
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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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