# 12th | Volume 3 | Chapter:4 | Question No. 146 to 150 | Accounting Ratio | Ts grewal Accounts 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.

(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

(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)

= 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

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

#### 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)

(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

#### 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