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

Q-96- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

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 II – Solution

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