Question 96 Chapter 4 of +2-B – USHA Publication 12 Class

Question 96 Chapter 4 of +2-B

Question 96 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

96. (Operating Ratio/Quick Ratio/WC T/O Ratio) Calculate (a) Operating Ratio (b) Quick Ratio (c) Working Capital Turnover Ratio from the following information

   
Equity share capital 1,00,000 Purchases  1,20,000
8% Preference share capital  80,000 Wages  8,000
9% Debentures  60,000 Closing stock 18,000
General Reserve  10,000 Selling and distribution Expenses 2,000
Sales (Revenue from Operation)  2,00,000 Other current Assets 50,000
Opening Inventory  12,000 Current liabilities 30,000

 

 

 

 

The solution of Question 96 Chapter 4 of +2-B: – 

 

(a) Operating Ratio = Operating Cost X 100
Net Sales
  =      
  = ₹ 1,24,000 X 100
  ₹ 2,00,000
  = 62%    

 

(b) Quick Ratio = Quick Assets
Current Liabilities
  =  
  = ₹ 50,000
  ₹ 30,000
  = 1.67: 1
(c) Working Capital Turnover Ratio = Sales
Working Capital
     
  = ₹ 2,00,000
  ₹ 38,000
  = 5.26 times

 

Operating Cost = Cost of goods sold + Operating Expenses
Cost of goods sold = Opening Stock + Purchases + Direct Expenses – Closing Stock
  = ₹ 12,000 + ₹ 1,20,000 + ₹ 8,000 – ₹ 18,000
  = ₹ 1,22,000
     
Operating Cost = ₹ 1,22,000 + ₹ 2,000
  = ₹ 1,24,000


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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 96 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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