commercemine.com

12th | Accounting Ratios | Question No. 146 To 150 | Ts Grewal Solution 2022-2023

Question 146:


Opening Inventory  `80,000; Purchases  `4,30,900; Direct Expenses  `4,000; Closing Inventory  `1,60,000; Administrative Expenses  `21,100; Selling and Distribution Expenses  `40,000; Revenue from Operations, i.e., Net Sales  `10,00,000. Calculate Inventory Turnover Ratio; Gross Profit Ratio; and Opening Ratio.

Answer:


(i)

Opening Inventory = 80,000

Closing Inventory = 1,60,000

Cost of Goods Sold = Opening Inventory + Purchases + Direct Expenses − Closing Inventory

= 80,000 + 4,30,900 + 4,000 − 1,60,000

= 3,54,900

Average Inventory= Opening Inventory+ Closing Inventory/2

                        =80,000+90,000/2

                        =1,20,000

Inventory Turnover Ratio= Cost of Goods Sold/ Average Inventory

                                                =3,54,000/1,20,000

=2.96 Times

(ii)

Sales = 10,00,000

Gross Profit = Net Sales − Cost of Goods Sold

= 10,00,000 − 3,54,900 = 6,45,100

Gross Profit Ratio= Gross profit ×100/Net Sales

                        = 645000×100/10,00,000

                        =64.51%

(iii)

Operating Expenses = Administration Expenses + Selling and Distribution Expenses

= 21,100 + 40,000 = 61,100

Operating Cost = Cost of Goods Sold+ Operating Expenses 

                        =3,54,900+61,100=4,16,000

Operating Ratio= Operating Cost/ Net Sales ×100

                        =4,16,000/10,00,000× 100

= 41.6%

 

Question 147:


Following information is given about a company:

 

 `

 

 

 `

Revenue From Operations, i.e., Net Sales Gross Profit

1,50,000

 

Opening Inventory

29,000

Cost of Revenue From Operations

30,000

 

Closing Inventory

31,000

(Cost of Goods Sold)

1,20,000

 

Debtors

16,000


From the above information, calculate following ratios:

(i) Gross Profit Ratio,

(ii) Inventory Turnover Ratio, and 

(iii) Trade Receivables Turnover Ratio.

 

Answer:


(i)

Sales = 1,50,000

Gross Profit = 30,000

Gross Profit Ratio= Gross profit ×100/Net Sales

                        = 30,000×100/1,50,000

                        = 20%

(ii)

Opening Inventory = 29,000

Closing Inventory = 31,000

Average Inventory= Opening Inventory+ Closing Inventory/2

                                    =29,000+30,000/2

                                    =30,000

Cost of Goods Sold = 1,20,000

Inventory tunover ratio= Cost of goods sold / Average Inventory

                                    = 1,20,000/30,000

                                    = 4 Times

(iii)

Trade receivable turnover ratio= Net Credit sales/ Average Trade receivables

Trade receivable turnover ratio= 1,50,000/16,000

= 9.4 Times

Question 148:


From the following calculate:

(a) Current Ratio; and 
(b) Working Capital Turnover Ratio.

 

 

 `

(i)

Revenue from Operations

1,50,000

(ii)

Total Assets

1,00,000

(iii)

Shareholders' Funds

60,000

(iv)

Non-current Liabilities

20,000

(v)

Non-current Assets

50,000

Answer:


A) Current Ratio = Current Assets Current Liabilities                        
Current Assets = Total Assets – Non Current Assets
                           = 1,00,000 – 50,000
                           =
 ` 50,000


Total Assets = Total Liabilities = Shareholders’ Funds + Non-Current Liabilities + Current Liabilities
     1,00,000 = 60,000 + 20,000 + Current Liabilities
Current Liabilities =
 ` 20,000
       Current Ratio = 50,000/20,000 = 2.5 : 1

B) Working Capital Turnover Ratio = Revenue from Operations /Working Capital                                                         
Working Capital = Current Assets – Current Liabilities
                              = 50,000 – 20,000
                              =
 ` 30,000


Working Capital Turnover Ratio = 1,50,000/30,000 =  5 times

 

Question 149:


From the following information obtained from the books of Kamal Ltd., calculate (i) Gross Profit Ratio and (ii) Net Profit Ratio:

 

`

Revenue from Operations

2,50,000

Purchases

1,05,000

Carriage Inwards

4,000

Salaries

30,000

Decrease in Inventory

15,000

Return Outwards

5,000

Wages

18,000

(CBSE 2020)

Answer:


(i) Gross Profit= Revenue- Net Purchase- Carriage Inwards- Wages- Decrease in Inventory

Gross Profit= 2,50,000- (1,05,000-5,000)- 4,0000 – 18,000-15,000

Gross Profit=1,13,500

Gross Profit=1,13,500×100/2,50,000 =45.20%

(ii) Net Profit= Gross Profit –Salaries

Net Profit= 1,13,000 – 30,000

Net Profit= 83,000

Net Profit=83,500×100/2,50,000 =33.20%

 

Question 150:


Calculate following ratios on the basis of the following information:
(i) Gross Profit Ratio;
(ii) Current Ratio;
(iii) Acid Test Ratio; and 
(iv) Inventory Turnover Ratio.

 

 `

 

 

 `

Gross Profit

50,000

 

Revenue from Operations

1,00,000

Inventory

15,000

 

Trade Receivables

27,500

Cash and Cash Equivalents

17,500

 

Current Liabilities

40,000

 

Answer:


(i)

Gross Profit Ratio = Gross Profit /Revenue from Operations×100

Gross Profit Ratio = 50,000/1,00,000×100=50%

 

(ii)

Current Ratio = Current Assets/Current Liabilities

Current Ratio = Inventory + Cash and Cash Equivalents + Trade Receivables/Current Liabilities

Current Ratio=15,000+17,500+27,500/40,000

=1.5:1

 

(iii)

Liquid Ratio = Liquid Assets/Current Liabilities

Liquid Ratio = Cash and Cash Equivalents + Trade Receivables/Current Liabilities

Liquid Ratio = 17,500+27,500/40,000

=1.125:1

 

(iv)

Inventory Turnover Ratio = Cost of Goods Sold/Average Stock

Inventory Turnover Ratio = Revenue from Operations − Gross Profit/Average Stock Inventory 

                 Turnover Ratio = 1,00,000 − 50,000/15,000

                  =3.33times

 

Click below for more Questions

Ts Grewal Solution 2022-2023

Class 12 / Volume – 3

Click on below links for 

12th TS Grewal’s Accountancy Solutions

Ts Grewal Solution 2022-2023

Ts Grewal Solution 2021-2022

Ts Grewal Solution 2020-2021