 Question 91 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

91. (GP Ratio/Debt Equity Ratio/WC T/O Ratio) Calculate (a) Gross Profit Ratio (b) Debt Equity Ratio (c) Working capital Turnover ratio
from the following information

 ₹ ₹ Net Sales (Revenue from Operation) 3,75,000 Current Assets 4,25,000 Cost of goods sold (i.e. Cost of Revenue from Operation) 2,50,000 Equity Share Capital 1,90,000 Current liabilities 1,20,000 Debentures 75,000 Loan 60,000

## The solution of Question 91 Chapter 4 of +2-B: –

 (a) Gross Profit Ratio = Gross Profit X 100 Net Sales = = ₹ 1,25,000 X 100 ₹ 3,75,000 = 33.33%

 (b) Debt Equity Ratio = Debt Equity = = ₹ 1,35,000 ₹ 1,90,000 = 0.71 : 1
 (c) Working Capital Turnover Ratio = Net Sales Working Capital = = ₹ 2,50,000 ₹ 3,05,000 = 1.23 times

or

 (c) Working Capital Turnover Ratio = Cost of goods sold Working Capital = = ₹ 2,50,000 ₹ 3,05,000 = 0.18 times

 Gross Profit = Net Sales – Cost of goods sold = ₹ 3,75,000 – ₹ 2,50,000 = ₹ 1,25,000 Debt = Loan + Debentures = ₹ 60,000 + ₹ 75,000 = ₹ 1,35,000 Working Capital = Current Assets – Current Liabilities = ₹ 4,25,000 – ₹ 1,20,000 = ₹ 3,05,000

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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