Question 131:
Property, Plant and Equipment and Intangible Assets ₹10,00,000; Working Capital ₹5,00,000; Cost of Revenue from Operations ₹50,00,000;
Gross Profit 20% of Cost.
Calculate Net Assets or Capital Employed Turnover Ratio.
Answer:
Capital Employed Turnover Ratio=Revenue from Operations/Capital Employed
Capital Employed Turnover Ratio=60,00,000/15,00,000
Capital Employed Turnover Ratio=4 Times
Working note:
1. Revenue from Operations = Cost of Revenue from Operations + Gross Profit (20% of Cost 50,00,000)
Revenue from Operations = 50,00,000 + 10,00,000=60,00,000
2. Capital Employed= Property, Plant and Equipment and Intangible Assets +Working Capital
15,00,000= 10,00,000+5,00,000
Capital Employed=15,00,000
Question 132:
Shareholders' Funds ₹10,00,000; Long-term Debts ₹20,00,000; Gross Profit at 20% on cost was ₹20,00,000. Calculate Net Assets or Capital Employed Turnover Ratio.
Answer:
Capital Employed Turnover Ratio=Revenue from Operations/Capital Employed
Capital Employed Turnover Ratio=1,20,00,000/30,00,000
Capital Employed Turnover Ratio=4 Times
Working note:
1. Revenue from Operations = 20,00,000×120/20
Revenue from Operations = 1,20,00,000
2. Capital Employed= Shareholders' Funds + Long-term Debts
Capital Employed= 10,00,000+20,00,000= 30,00,000
Capital Employed=30,00,000
Question 133:
From the following Balance Sheet of Akhil Ltd. as at 31st March, 2023, calculate (i) Net Assets Turnover Ratio and (ii) Fixed Assets Turnover Ratio:
|
Particulars |
Note No. |
₹ |
|
I. EQUITY AND LIABILITIES |
|
|
|
1. Shareholders' Funds |
|
|
|
(a) Share Capital |
|
10,00,000 |
|
(b) Reserves and Surplus |
|
3,00,000 |
|
2. Non-Current Liabilities |
|
|
|
Long-term Borrowings: |
|
|
|
8% Debentures |
|
5,00,000 |
|
3. Current Liabilities |
|
|
|
(a) Trade Payables |
|
1,50,000 |
|
(b) Other Current Liabilities |
|
50,000 |
|
Total |
|
20,00,000 |
|
IL. ASSETS |
|
|
|
1. Non-Current Assets |
|
|
|
Property, Plant and Equipment and Intangible Assets: |
|
|
|
Property, Plant and Equipment (Net of Depreciation) |
|
13,00,000 |
|
2. Current Assets |
|
|
|
(a) Inventories |
|
3,00,000 |
|
(b) Trade Receivables |
|
2,50,000 |
|
(c) Cash and Cash Equivalents |
|
1,50,000 |
|
|
|
|
|
Total |
|
20,00,000 |
Revenue from Operations for the year was ₹45,00,000.
Answer:
(i) Net Assets Turnover Ratio
Net Assets Turnover Ratio =Revenue from Operations/Capital Employed
Net Assets Turnover Ratio =45,00,000/18,00,000
Net Assets Turnover Ratio =2.5 Times
Working Note:
Capital Employed= Share Capital +Reserves and Surplus +8% Debentures
Capital Employed= 10,00,000+3,00,000+5,00,000
Capital Employed= ₹18,00,000
Fixed Assets Turnover Ratio
Net Assets Turnover Ratio = Revenue from Operations/ Fixed Assets (Net)
Net Assets Turnover Ratio = 45,00,000/13,00,000
Net Assets Turnover Ratio = 3.47 Times
Question 134:
From the following, calculate Gross Profit Ratio:
Gross Profit: ₹50,000; Revenue from Operations ₹5,00,000; Sales
Return: ₹50,000.
Answer:
Net Sales = ₹5,00,000
Gross Profit = ₹50,000
Gross Profit Ratio = Gross Profit /
Net Sales × 100
= 50,000/5,00,000 × 100 = 10%
Note: Here we will not deduct the amount of sales return because the amount of net sales has already been provided in the question.
Question 135:
Compute Gross Profit Ratio from the following information:
Cost of Revenue from Operations (Cost of Goods Sold) ₹5,40,000; Revenue
from Operations (Net Sales) ₹6,00,000.
Answer:
Gross
Profit = Revenue from Operations – Cost of Revenue from Operations
= 6,00,000 – 5,40,000
= ₹60,000
Gross Profit Ratio = Gross Profit Revenue from Operations × 100
= 60,0006,00,000 × 100
= 10%
Ts Grewal Solution 2026-2027
Click below for more Questions
Class 12 / Volume – III
Chapter 4 – Accounting Ratios