# Question 95 Chapter 4 of +2-B – USHA Publication 12 Class Q-95- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 95 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

95. (NP Ratio/Current Ratio/Debt Equity Ratio from a complete Balance sheet) Balance Sheet of ‘A’ Ltd. is given below :

 Particulars ₹ I. Equity and Liabilities Shareholders’ Funds Equity Share Capital 4,000 Shares of 100 each fully paid 4,00,000 Reserves and Surplus Surplus in Statement of Profit and Loss (Current year profit after tax) 3,00,000 General Reserve 3,00,000 Non-Current Liabilities Long-term Borrowings 15% Debentures 2,00,000 Current Liabilities Trade Payable 5,80,000 17,80,000 II. Assets Non-Current Assets Tangible Assets Building 6,00,000 Machinery 1,20,000 Current Assets Inventory 3,50,000 Trade Receivable 6,50,000 Input CGST 25,000 Input SGST 25,000 Bank 10,000 17,80,000

Net sales (Revenue from Operation) for the current year ₹ 57,60,000
Calculate the following ratios :
(i) Net profit ratio, (ii) Current ratio,
(iii) Debt equity ratio.

## The solution of Question 95 Chapter 4 of +2-B: –

 (i) Net Profit Ratio = Net Profit X 100 Net Sales = = ₹ 3,00,000 X 100 ₹ 57,60,000 = 70%

 (ii) Current Ratio = Current Assets Current Liabilities = = ₹ 10,60,000 ₹ 5,80,000 = 1.83: 1
 (iii) Debt equity Ratio = Debt Equity = = ₹ 2,00,000 ₹ 10,00,000 = 1 : 5

 Current Assets = Trade Receivable + Inventory + Input CGST + Input SGST + Bank = ₹ 6,50,000 + ₹ 3,50,000 + ₹ 25,000 + ₹ 25,000 + ₹ 10,000 = ₹ 10,60,000 Current Liabilities = Trade Payable = ₹ 5,80,000 Debt = 15% Debentures = ₹ 2,00,000 Gross Profit = Equity Share Capital +Surplus in Statement of Profit and Loss + General Reserve = ₹ 4,00,000 + ₹ 3,00,000 + ₹ 3,00,000 = ₹ 10,00,000

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