Question 96 Chapter 4 of +2-B
Table of Contents
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
- 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 (Reconstitution of Partnership)
- 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)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
