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VDO+ Tag:Question 117 Chapter 14 of Class 12 Part – 2 – 2024
Miscellaneous (Analytical Questions)
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Video Tag:117. (Quick Ratio/Inventory T/O Ratio/Return on Shareholders’ Investment) The following are the Summarised Statement of Profit and Loss of Hindustan Products for the year ended 31.3.2018 and the Balance sheet of the company as of that date.
| STATEMENT OF PROFIT AND LOSS | ||
| Particulars | ₹ | |
| Revenue from Operations | 8,00,000 | |
| Less : Expenses | ||
| Purchases | 5,45,000 | |
| Changes in Inventories | (1,00,000) | |
| (Opening Inventory – Closing Inventory) | ||
| (₹ 99,000 – ₹ 1,99,000) | ||
| Direct Expenses | 15,000 | |
| Selling & Distribution Expenses | 2,40,000 | |
| Loss on Sale of Assets | 40,000 | 7,40,000 |
| Net Profit | 60,000 | |
| BALANCE SHEET | |
| Particulars | ₹ |
| I. Equity and Liabilities | |
| Shareholders’ Funds | |
| Equity Share Capital | 2.90.000 |
| Reserves and Surplus | |
| Surplus in Statement of Profit and Loss | 60,000 |
| Current Liabilities | |
| Trade Payable | 1,15,000 |
| Outstanding Expenses | 15,000 |
| 4,80,000 | |
| II. Assets : | |
| Non-Current Assets | |
| Tangible Assets | |
| Land | 2,30,000 |
| Current Assets | |
| Inventory | 1,99,000 |
| Trade Receivable | 21,000 |
| Cash | 30,000 |
| 4,80,000 | |
Calculate the following ratios
(i) Quick ratio (ii) Inventory Turnover Ratio (ii) Return on Shareholders Investment
The solution of Question 117 Chapter 14 of Class 12 Part – 2 – 2024: –
| (i) Quick Ratio | = | Quick Assets |
| Current Liabilities | ||
| = | ₹ 51,000 | |
| ₹ 1,30,000 | ||
| = | 0.39 : 1 |
| (ii) Inventory Turnover Ratio | = | Cost of goods sold |
| Average Inventory | ||
| = | ₹ 4,60,000 | |
| ₹ 1,49,000 | ||
| = | 3.08 times |
| (i) Return on investment Ratio | = | Net Profit | X | 100 |
| Shareholders Funds | ||||
| = | ₹ 60,000 | X | 100 | |
| ₹ 3,50,000 | ||||
| = | 17.14% |
Working Notes:-
| Quick Assets | = | Trade Receivable + Cash |
| = | ₹ 21,000 + ₹ 30,000 | |
| = | ₹ 51,000 | |
| Current Assets | = | Inventory + Trade Receivable + Bank + Cash |
| = | ₹ 78,400 + ₹ 36,000 + ₹ 10,000 + ₹ 2,000 | |
| = | ₹ 1,26,400 | |
| Current Liabilities | = | Trade Payable + Outstanding Expenses |
| = | ₹ 1,15,000 + ₹ 15,000 | |
| = | ₹ 1,30,000 | |
| Cost of goods sold | = | Opening stock + Purchases + Direct Expenses – Closing Stock |
| = | ₹ 99,000 + ₹ 5,45,000 + ₹ 15,000 – ₹ 1,99,000 | |
| = | ₹ 4,60,000 | |
| Shareholders’ Funds | = | Share capital + Surplus in Statement of Profit & Loss |
| = | ₹ 2,90,000 + ₹ 60,000 | |
| = | ₹ 3,50,000 |
| Average Inventory | = | Opening Inventory + Closing Stock |
| 2 | ||
| = | ₹ 99,000 + ₹ 1,99,000 | |
| 2 | ||
| = | ₹ 1,49,000 |
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Ratio Analysis
Chapter No. 15 – Cash Flow Statement
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out Part 1 of both books.
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1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 1 Class 12 by Unimax Publication