Chapter 9 Analysis of Financial Statements Book - Keeping and Accountancy 12th Stantard HSC Maharashtra State Board 2020 Latest

Chapter 9: Analysis of Financial Statements

 

Select the most appropriate alternative from the given below and rewrite the sentence

 

Gross Profit Ratio indicates the relationship of gross profit to the___________.

 

Net-Cash

Net-Sales

Net Purchases

Gross Sales


Current Ratio =

Current Liabilities

Current Liabilities

Quick Assets

Quick Liabilities

Current Assets

None of these


Liquid Assets =____________

 

Current Assets + Stock

Current Assets - Stock

Current Assets - stock + prepaid Expenses

None of these


Cost of goods sold___________

 

Sales - Gross profit

Sales - Net Profit

Sales Proceeds

None of these


Net-Profit Ratio is equal to______________

 

Operating ratio

Operating net-profit ratio

Gross Profit Ratio

Current Ratio


The Common Size Statement requires______________

 

Common base

Journal Entries

Cash Flow

Current Ratio


Bill Payable is_________________

 

Long term loan

Current Liabilities

Liquid Assets

Net Loss


Generally Current Ratio should be___________

 

2:1

1:1

1:2

3:1


From financial statement analysis the creditors are specially interested to know_________________

 

Liquidity

Profits

Sale

Share Capital


Give one word/term/phrase for the following statement.


The statement showing profitability of two different periods


Comparative Income Statement.


The ratio measures the relationship between Gross Profit and Net Sales.


Gross Profit Ratio


Critical evaluation of financial statements to measure profitability.


Analysis of Financial Statement


A particular mathematical number showing relationship between two accounting figures.


Ratio


An asset which can be converted into cash immediately


Liquid Asset


The ratio measuring the relationship between net profit and ownership capital employed.


ROCE


The statement showing financial position for different periods of previous year and current year.


Comparative Balance Sheet


Statement showing changes in cash and cash equivalent during a particular period.


Cash Flow Statement


Activity related to acquisition of long term assets and investment.


Financing Activities


The ratio that establishes relationship between Quick Assets and Current Liabilities


Liquid Ratio


 

State true or false with reason.

 

Financial Statement includes only Balance Sheets.

 

True

False

This statement is False.

Financial statements include Balance Sheet and Profit and Loss A/c. This is because financial statements are prepared by business organisations to find out efficiency, solvency, profitability, growth, strength and status of the business. For this they need information from the balance sheet as well as from Profit and Loss A/c.

 

Analysis of financial statements is a tool but not a remedy.

 
Options

True

False

This statement is True.

Based on analysis of financial statement one can get idea of financial strength and weakness of the business. However, based on this one cannot take decision about the business on various issues. Hence analysis of financial statement is a tool but not a remedy.

 

Purchase of Fixed Assets is operating cash flow.

 
Options

True

False

This statement is False.

Purchase of fixed assets is cash flow from investing activities. It is not a day to day operations activities like office/selling/distribution finance expenses/activities.


Dividend paid is not a source of fund

 
Options

True

False

This statement is True.

Dividend is always paid on shares issued by a company is an expense. Shares itself is a source of fund. In payment of dividend cash goes out from the company. It is an out flow of cash and not a source of fund.


Gross Profit depends upon Net Sales.

 
Options

True

False

This statement is True.

Gross profit ratio discloses the relation between gross profit and total net sales. Gross profit ratio is an income-based ratio, where gross profit is an income. There is direct relation between net sales and gross profit. Higher the net sales higher the gross profit.



Payment of cash against purchase of stock is use of fund.

 
Options

True

False

This statement is True.

Cash payment for purchase of stock is made from cash balance or/and from bank balance which is a part of business fund. When stock or materials we purchase we use cash for payment.


Ratio Analysis is useful for inter-firm comparison

 
Options

True

False

This statement is True.

The comparision of the operating performance of a business entity with the other business entities is known as inter-firm comparision. This ratio analysis assist to know how and to what extent a business entity is strong or weak as compared to other business entity


The short term deposits are considered as cash equivalent.

 
Options

True

False

This statement is True.

The short-term deposits are liquid assets. It means deposits kept for some period (usually less than one year) and they are kept with an intention to get money quickly as and when required. They are as good as cash and considered as cash equivalent

 

Activity Ratios Turnover Ratios are the same.

 
Options
True

False

This statement is True.

Turnover ratio is an efficiency ratio to check how efficiently company is using different assets to extract earnings from them. Activity ratio are financial analysis tools used to measure a business ability to convert its assets into cash. From both these definitions we can say that Activity ratios and Turnover ratios are same.

 

Current Ratio measures the liquidity of the business.

Options


True

False

This statement is True.

Current ratio shows relation between current assets and current liabilities. If the proportion of current assets is higher than current liabilities, liquidity position of business entity is considered good. More liquidity means more short-term solvency. From the above it is proved that current ratio measures the liquidity of the business.

 

Ratio analysis measures profitability efficiency and financial soundness of the business.

Options

 

True

False

This statement is True.

With the help of profitability ratios (Gross profit, Net profit and Operating profit) one can get the idea of profitability efficiency of the firm and with the help of liquidity ratios (Current ratio and liquid ratio) one can get the idea of solvency or financial soundness of the business.

 

Usually the current ratio should be 3:1.

 
Options

True

False

This statement is False.

Usually the current ratio should be 2:1. It means current assets are double of current liabilities. It shows the short-term solvency of business enterprises.

 

Answer in one sentence only.

 

Mention two objectives of comparative statement?

Objectives of comparative statements are :

(i) Compare financial data at two points of time and

(ii) Helps in deriving the meaning and conclusions regarding the changes in financial positions and operating results.

 

 

State three examples of cash inflows?

Examples of cash inflows are :

(1) Interest received,

(2) Dividend received,

(3) Sale of asset/investment,

(4) Rent received.

 

State three examples of cash outflows?

Examples of cash outflows are :

(1) Interest paid,

(2) Loss on sale of asset,

(3) Dividend paid,

(4) Repayment of short-term borrowings.

 

Give the formula of Gross Profit Ratio?

Gross profit ratio = (Gross profit / Net sales) x 100

Where Gross profit = Net sales – Cost of goods sold

Cost of goods sold = Opening stock + Purchase – Purchase return + Direct expense – Closing stock

Net sales = Sales – Sales return.

 

Give the formula of gross profit?

Gross profit = Net sales – Cost of goods sold.

Cost of goods sold = Opening stock + Purchase – Purchase return + Direct expense – Closing stock

Net sales = Sales – Sales return.

 

 

Give any three examples of current assets?

Cash or cash equivalent short-term lending and advances, 

expenses paid in advance, 

taxes paid in advance, etc. 

are the examples of current assets.

 

Give the formula of current ratio?

Current ratio = Current assets / Current liabilities

 

Give the formula of quick assets?

Quick assets = Current assets – (Stock + Prepaid expense)

 

State the formula of Cost of goods sold?

Cost of goods sold = Opening stock + Purchase – Purchase return + Direct expense – Closing stock

 

State the formula of Average Stock?

Average stock = (Opening stock of goods + Closing stock of goods) / 2


Practical Problems.


Accounts Chapter 9: Analysis of Financial Statements.


Practical problem | Q 1 | Page 376


From the Balance Sheet of Amar Traders as on 31st March 2018 and 31st, March 2019 prepare comparative Balance Sheet.

Liabilities

31.3.2018 (₹)

31.3.2019 (₹)

Assets

31.3.2018 (₹)

31.3.2019 (₹)

Capital

60,000

72,000

Fixed Assets

1,20,000

1,50,000

Reserves and Surplus

24,000

30,000

Current Assets

28,000

27,000

Loans

34,000

51,000




Creditors

30,000

24,000





1,48,000

1,77,000


1,48,000

1,77,000


Solution: 


Comparative Balance Sheet of Amar Traders as on 31st March 2018 and 31st March 2019



Particulars

31 – 03 – 2018 (₹)

31 – 03 – 2019 (₹)

Absolute Change (₹)

Percentage Change

I. Sources of Funds

(a) Capital

60,000

72,000

12,000

20 % Increase

(b) Reserve and Surplus

24,000

30,000

6,000

25 % Increase

(A) Net Worth

84,000

1,02,000

18,000

21.43 % Increase

Borrowed Funds





(a) Loans

34,000

51,000

17,000

50 % Increase

(B) Total Borrowed Funds

34,000

51,000

17,000

50 % Increase

Total Funds Available (A + B)

1,18,000

1,53,000

35,000

29.66 % Increase

 

II. Application of Funds

A. Fixed Assets

1,20,000

1,50,000

30,000

25 % Increase

B. Working Capital





(1) Current Assets

28,000

27,000

(1,000)

(3.57 %) Decrease

Less : (2) Current Liabilities

Creditors

30,000

24,000

(6,000)

(20 %) Decrease

Working Capital





(Current Assets – Current Liabilities)

(2,000)

3,000

5,000

(250 %) Increase

Total Funds Applied (A + B)

1,18,000

1,53,000

35,000

29.66 % Increase

Percentage change = (Amount of Absolute Change ÷ Amount of Previous Year) × 100



Practical problem | Q 2 | Page 376


From the following Balance Sheet of Alpha Limited prepare a comparative Balance Sheet as on 31st March 2018 and 31st March 2019.

Balance Sheet As on 31st March 2018 and 31st March 2019

Liabilities

31.3.2018 (₹)

31.3.2019 (₹)

Assets

31.3.2018 (₹)

31.3.2019 (₹)

Equity Share Capital

2,00,000

2,50,000

Land

80,000

1,00,000

12% Preference Shares

80,000

80,000

Building

60,000

90,000

Reserves and Surplus

1,00,000

1,40,000

Plant and Machinery

73,000

1,73,000

15% Debentures

60,000

51,000

Stock

1,50,000

1,10,000

Creditors

50,000

80,000

Debtors

1,28,000

1,40,000

Bills Payable

10,000

6,000

Bank

34,000

37,000

Provision for Taxation

25,000

43,000





5,25,000

6,50,000


5,25,000

6,50,000


Solution: 


Balance Sheet As on 31st March 2018 and 31st March 2019


Comparative Balance Sheet of Alpha Limited as on 31st March, 2018 and 31st March, 2019



Particulars

31 – 03 – 2018 (₹)

31 – 03 – 2019 (₹)

Absolute Change (₹)

Percentage Change

I. Sources of Funds

(a) Equity Share Capital

2,00,000

2,50,000

50,000

25 % Increase

(b) 12 % Preference Shares

80,000

80,000

(c) Reserve and Surplus

1,00,000

1,40,000

40,000

40 % Increase

(A) Net Worth

3,80,000

4,70,000

90,000

23.68 % Increase

Borrowed Funds





Secured Loan – 15 % Debentures

60,000

51,000

(9,000)

(15 %) Decrease

(B) Total Borrowed Funds

60,000

51,000

(9,000)

(15 %) Decrease

Total Funds Available (A + B)

4,40,000

5,21,000

81,000

18.41 % Increase

  

II. Application of Funds

A. Fixed Assets – Land

80,000

1,00,000

20,000

25 % Increase

Building

60,000

90,000

30,000

50 % Increase

Plant and Machinery

73,000

1,73,000

1,00,000

137 % Increase


2,13,000

3,63,000

1,50,000

70.42 % Increase

I. B. Working Capital





Current Assets – Stock

1,50,000

1,10,000

(40,000)

(26.67) % Decrease

Debtors

1,28,000

1,40,000

12,000

9.375 % Increase

Bank

34,000

37,000

3,000

8.82 % Increase

Less : Current Liabilities





Creditors

50,000

80,000

30,000

60 % Increase

Bills Payable

10,000

6,000

(4,000)

(40 %) Decrease

Provision for Taxation

25,000

43,000

18,000

72 % Increase

Working Capital





(Current Assets – Current Liabilities)

2,27,000

1,58,000

(69,000)

(30.40 %) Decrease

Total Funds Applied (A + B)

4,40,000

5,21,000

81,000

18.41 % Increase



Practical problem | Q 3 | Page 377


Prepare Comparative Balance Sheet for the year ended 31.3.18 and 31.3.19 Assets & Liabilities as follows

Particulars

31.3.18 (₹)

31.3.19 (₹)

1) Fixed Assets

1,20,000

1,50,000

2) Share Capital

60,000

72,000

3) Current Assets

28,000

27,000

4) Reserve & Surplus

24,000

30,000

5) Loan

34,000

57,000

6) Current liabilities

30,000

24,000


Solution: 


Comparative Balance Sheet as on 31st March 2018 and 31st March 2019


I. Sources of Funds

Particulars

31 – 03 – 2018 (₹)

31 – 03 – 2019 (₹)

Absolute Change (₹)

Percentage Change

(a) Share Capital

60,000

72,000

12,000

20 % Increase

(b) Reserve and Surplus

24,000

30,000

6,000

25 % Increase

(A) Net Worth

84,000

1,02,000

18,000

21.43 % Increase

(B) Borrowed Funds – Loan

34,000

57,000

23,000

67.65 % Increase

Total Funds Available (A + B)

1,18,000

1,59,000

41,000

34.74 % Increase

 

II. Application of Funds

A. Fixed Assets

1,20,000

1,50,000

30,000

25 % Increase

Working Capital





(1) Current Assets

28,000

27,000

(1,000)

(3.57 %) Decrease

Less : (2) Current Liabilities

30,000

24,000

(6,000)

(20 %) Decrease

B. Working Capital





(Current Assets – Current Liabilities)

(2,000)

3,000

5,000

(250 %) Decrease

Total Funds Applied (A + B)

1,18,000

1,53,000

35,000

29.66 % Increase



Practical problem | Q 4 | Page 377


Prepare Comparative Balance Sheet for the year ended 31.3.17 and 31.3.18

Particulars

31.3.17 (₹)

31.3.18 (₹)

1) Current liabilities

60,000

48,000

2) Fixed Assets

2,40,000

3,00,000

3) Loan

68,000

1,02,000

4) Share Capital

1,20,000

1,44,000

5) Reserve & Surplus

48,000

60,000

6) Current Assets

56,000

54,000


Solution: 


Comparative Balance Sheet as on 31st March 2017 and 31st March 2018



Particulars

31 – 03 – 2017 (₹)

31 – 03 – 2018 (₹)

Absolute Change (₹)

Percentage Change

I. Sources of Funds

(a) Share Capital

1,20,000

1,44,000

24,000

20 % Increase

(b) Reserve and Surplus

48,000

60,000

12,000

25 % Increase

(A) Net Worth

1,68,000

2,04,000

36,000

21.43 % Increase

(B) Borrowed Funds – Loan

68,000

1,02,000

34,000

50 % Increase

Total Funds Available (A + B)

2,36,000

3,06,000

70,000

29.66 % Increase

II. Application of Funds

A. Fixed Assets

2,40,000

3,00,000

60,000

25 % Increase

B. (1) Current Assets

56,000

54,000

(2,000)

(3.57 %) Decrease

Less : (2) Current Liabilities

60,000

48,000

(12,000)

(20 %) Decrease

B. Working Capital





(Current Assets – Current Liabilities

(4,000)

6,000

10,000

(250 %) Decrease

Total Funds Applied (A + B)

2,36,000

3,06,000

70,000

29.66 % Increase



Practical problem | Q 5 | Page 377


Prepare Comparative Income Statement of Noha Limited for the year ended 31.3.17 and 31.3.18

Particulars

31.3.17 (₹)

31.3.18 (₹)

Sales

2,00,000

3,00,000

Income Tax

50%

50%

Cost of Sales

1,20,000

80,000

Indirect Expenses

8,000

12,000


Solution: 


Comparative Income Statement of Noha Limited For the year ended 31st March, 2017 and 31st March, 2018



Particulars

31 – 03 – 2017 (₹)

31 – 03 – 2018 (₹)

Absolute Change (₹)

Percentage Change

Sales

2,00,000

3,00,000

1,00,000

50 % Increase

Less: Cost of Sales

1,20,000

80,000

(40,000)

(33.33 %) Decrease

Gross Profit

80,000

2,20,000

1,40,000

175 % Increase

Less : Indirect Expenses

8,000

12,000

4,000

50 % Increase

Net Profit before Tax

72,000

2,08,000

1,36,000

188.89 % Increase

Less : Tax 50 %

36,000

1,04,000

68,000

188.89 % Increase

Net Profit after Tax

36,000

1,04,000

68,000

188.89 % Increase



Practical problem | Q 6 | Page 378


Prepare comparative Income Statement of Sourabh Limited for the year ended 31.3.17 and 31.3.18

Particulars

31.3.17 (₹)

31.3.18 (₹)

Sales

4,00,000

6,00,000

Indirect Expenses

16,000

24,000

Cost of Sales

24,000

56,000

Income Tax

50%

50%


Solution: 


Comparative Income Statement of Sourabh Limited For the year ended on 31st March, 2017 and 31st March, 2018


Particulars

31 – 03 – 2017 (₹)

31 – 03 – 2018 (₹)

Absolute Change (₹)

Percentage (%) Change

Sales

4,00,000

6,00,000

2,00,000

50 % Increase

Less : Cost of Sales

24,000

56,000

32,000

133.33 % Increase

Gross Profit

3,76,000

5,44,000

1,68,000

44.68 % Increase

Less : Indirect Expences

16,000

24,000

8,000

50 % Increase

Net Profit before Tax

3,60,000

5,20,000

1,60,000

44.44 % Increase

Less : Tax 50 %

1,80,000

2,60,000

80,000

44.44 % Increase

Net Profit after tax

1,80,000

2,60,000

80,000

44.44 % Increase



Practical problem | Q 7 | Page 378


Following is the Balance Sheet of Sakshi Traders for the year ended 31.3.17 and 31.3.18

Liabilities

31.3.17 (₹)

31.3.18 (₹)

Assets

31.3.17 (₹)

31.3.18 (₹)

Equity Share Capital

80,000

80,000

Fixed Assets

1,20,000

1,44,000

Pref. Share Capita

20,000

20,000

Investment

20,000

20,000

Reserve & Surplus

20,000

24,000

Current Assets

60,000

48,000

Secured Loan

40,000

16,000




Unsecured Loan

20,000

36,000




Current Liabilities

20,000

36,000





2,00,000

2,12,000


2,00,000

2,12,000

Prepare common-size Balance Sheet for the year 31.3.17 and 31.3.18


Solution: 


Common Size Statement of Balance Sheet of Sakshi Traders as on 31st March 2017 and 31st March 2018

Particulars

Amount (₹)

% to total of Balance Sheet

31 – 03 – 2017 (₹)

31 – 03 – 2018 (₹)

31 – 03 – 2017 (₹)

31 – 03 – 2018 (₹)

I. Sources of Funds :

(1) Owner’s Equity





Equity Share Capital

80,000

80,000

44.45

45.45

Preference Shares Capital

20,000

20,000

11.11

11.36

Reserve and Surplus

20,000

24,000

11.11

13.64

Net Worth

1,20,000

1,24,000

66.67

70.45

(2) Borrowed Funds





Secured Loans

40,000

16,000

22.22

9.09

Unsecured Loans

20,000

36,000

11.11

20.46


60,000

52,000

33.33

29.55

Total Borrowed Funds

1,80,000

1,76,000

100

100

II. Application of Funds

(1) Fixed Assets

1,20,000

1,44,000

66.67

81.82

(2) Investments

20,000

20,000

11.11

11.36


1,40,000

1,64,000

77.78

93.18

(3) Working Capital





(A) Current Assets

60,000

48,000

-

-

Less : (B) Current Liabilities

20,000

36,000

-

-


40,000

12,000

22.22

6.82

Total Funds Applied

1,80,000

1,76,000

100

100




Practical problem | Q 8 | Page 378


Prepare common size Income Statement for the year ended 31.3.17 and 31.3.18.

Particulars

31.3.17 (₹)

31.3.18 (₹)

Sales

2,00,000

2,50,000

Cost of goods sold

1,50,000

1,70,000

Office and Administrative Expenses

4,000

6,000

Selling and Distribution Expenses

6,000

1,000


Solution: 


Common Size Statement for the year ended on 31st March, 2017 and 31st March, 2018


Particulars

Amount (₹)

Percentage (%)

Amount (₹)

Percentage (%)

Sales

2,00,000

100

2,50,000

100

Less: Cost of goods sold

1,50,000

75

1,70,000

68

Gross Profit

50,000

25

80,000

32

Less: Office and Administrative Expenses

4,000

2

6,000

2.4

Less: Selling and Distribution Expenses

6,000

3

1,000

0.4

Net Profit

40,000

20

73,000

29.2



Practical problem | Q 9 | Page 378


Following is the Balance Sheet of Sakshi Limited. Prepare cashflow statement.:

Liabilities

31.3.17 (₹)

31.3.18 (₹)

Assets

31.3.17 (₹)

31.3.18 (₹)

Share Capital

2,00,000

3,00,000

Cash

20,000

30,000

Creditors

60,000

90,000

Debtors

1,40,000

2,50,000

Profit and Loss A/c

40,000

70,000

Stock

80,000

70,000




Land

60,000

1,10,000


3,00,000

4,60,000


3,00,000

4,60,000


Solution: 


Cash Flow Statement For the year ended 31st March, 2017 and 31st March, 2018


Particulars

Amount (₹)

Amount (₹)

(A) Cash flow from Operating activities



Closing balance of Profit and Loss A/c

70,000


Less: Opening balance of Profit and Loss A/c

40,000



30,000


Add: Decrease in Current Asset – Stock

10,000


Add: Increase in Current Liabilities – Creditors

30,000



70,000


Less: Increase in Current Asset – Debtors

1,10,000


Net Cash from Operating activities (A)


(40,000)

(B) Cash flow from Investing activities



Purchase of Land

50,000

50,000

Net Cash used in Investing activities (B)


(C) Cash flow from Financing activities



Amount of share capital received

1,00,000

1,00,000

Net Cash from Financing activities (C)


Net increase in cash and cash equivalent (A + C – B)


10,000

Cash equivalent in the beginning of period


20,000

Cash equivalent at the end of period


30,000



Practical problem | Q 10 | Page 378


From the following Balance Sheet of Konal Traders prepare cash flow statement.

Liabilities

31.3.17 (₹)

31.3.18 (₹)

Assets

31.3.17 (₹)

31.3.178 (₹)

Share Capital

2,00,000

2,50,000

Cash

30,000

47,000

Creditors

70,000

45,000

Debtors

1,20,000

1,15,000

Profit and Loss A/c

10,000

23,000

Stock

80,000

90,000




Land

50,000

66,000


2,80,000

3,18,000


2,80,000

3,18,000


Solution: 


Cash Flow Statement For the year ended on 31st March 2017 and 31st March 2018


Particular

Amount (₹)

Amount (₹)

(A) Cash flow from Operating activities



Closing balance of Profit and Loss A/c

23,000


Less: Opening balance of Profit and Loss A/c

10,000



13,000


Add: Decrease in Current Assets – Debtors

5,000



18,000


Less: Increase in Current Assets – Stock

(10,000)


Less: Decrease in Current Liabilities – Creditors

(25,000)


Net Cash from Operating activities (A)


(17,000)

(B) Cash flow from Investing activities



Purchase of Land

16,000

16,000

Net Cash used in Investing activities (B)


(C) Cash flow from Financing activities



Amount of share capital received

50,000

50,000

Net Cash used in Financing activities (C)


Net increase in cash and cash equivalent (A+ C – B)


17,000

Cash equivalent in the beginning of period


30,000

Cash equivalent at the end of period.


47,000



Practical problem | Q 11 | Page 379


A Compay had the following Current Assets and Current Liabilities

Debtors

₹ 1,20000

Creditors

₹ 60,000

Bills Payable

₹ 40,000

Stock

₹ 60,000

Loose Tools

₹ 20,000

Bank overdraft

₹ 20,000

Calculate Current Ratio.


Solution: 


(1) Current Assets = Debtors + Stock + Loose Tools

= 1,20,000 + 60,000 + 20,000

 2,00,000

(2) Current liabilities = Creditors + Bills payable + Bank overdraft

= 60,000 + 40,000 + 20,000

 1,20,000

(3) Current ratio = Current Assets ÷ Current Liabilities 

 Current Ratio = 200000 ÷ 120000

 Current Ratio = 5 ÷ 3

 Current Ratio = 5:3


Practical problem | Q 12 | Page 379


Current Assets of Company  6,00,000 and its Current Ratio is 2:1

Find Current Liabilities


Solution: 


Current Ratio = Current Assets ÷ Current Liabilities


2 ÷ 1 = 600000 ÷ Current Liabilities


2 × Current Liabilities = 600000 × 1


 Current Liabilities = 600000 ÷ 2


 Current Liabilities =  300000



Practical problem | Q 13 | Page 379


Current Liabilities =  3,00,000

Working Capital  =  8,00,000

Inventory =  2,00,000

Calculate Quick Ratio.


Solution: 


Current assets = Current liabilities + Working capital

= 3,00,000 + 8,00,000

 11,00,000

Quick assets = Current assets – Inventory

= 11,00,000 – 2,00,000

 9,00,000

Quick liability = Current liabilities –  Bank O / D

 3,00,000

Quick ratio = Quick Assets ÷ Quick Liabilities

 Quick Ratio = 900000 ÷ 300000

 Quick Ratio = 3 ÷ 1

 Quick Ratio = 3:1


Practical problem | Q 14 | Page 379


Calculate the Gross Profit Ratio

Sales

₹ 2,70,000

Net purchases

₹ 1,50,000

Sales Ratio

₹ 20,000

Closing Stock

₹ 25,000

Operating Stock

₹ 45,000


Solution: 


Net sales = Sales – Sales return

= 2,70,000 – 20,000

 2,50,000

Cost of goods sold = Opening stock + Net purchase – Closing stock

= 45,000 + 1,50,000 – 25,000

 1,70,000

Gross profit = Net sales – Cost of goods sold

= 2,50,000 – 1,70,000

 80,000

Gross Profit ratio = (Gross Profit ÷ Net Sales) × 100

 Gross Profit Ratio = (80000 ÷ 250000) × 100

 Gross Profit Ratio = 32% 


Practical problem | Q 15 | Page 379


Calculate Net Profit Ratio from the following

Sales

₹ 3,80,000

Cost of good sold

₹ 2,60,000

Indirect Exp

₹ 60,000


Solution: 



Sales

₹ 3,80,000

Less: Cost of goods sold

₹ 2,60,000

Gross profit

₹ 1,20,000

Less: Indirect expense

₹ 1,60,000

Net profit

₹ 1,60,000

 

Net Profit Ratio = (Net Profit ÷ Sales) × 100

 Net Profit Ratio = (60000 ÷ 380000) × 100

 

 Net Profit Ratio = 15.79 %



Practical problem | Q 16 | Page 379


Calculate Operating Ratio

Cost of good sold

₹ 3,50,000

Operating Exp.

₹ 30,000

Sales

₹ 5,00,000

Sales Return

₹ 30,000


Solution:


Net sales = Sales – Sales return

= 5,00,000 – 30,000

 4,70,000

Operating ratio = [(Cost of Goods Sold + Operating Expense) ÷  Net Sales ] × 100

 Operating Ratio = [(350000 + 30000) ÷ 470000] × 100

 

 Operating Ratio = (380000 ÷ 470000) × 100

 

 Operating Ratio = 80.85 %

 


Practical problem | Q 17 | Page 379


Calculate

1) Current Assets

₹ 3,00,000

2) Current Liabilities

₹ 1,00,000

What is current Ratio.


Solution:


Current Ratio = Current Assets / Current Liabilities


 Current Ratio = 300000 / 100000


 Current Ratio = 3 / 1


 The Current Ratio is 3:1



Book-keeping and Accountancy 12th Standard 

HSC Maharashtra State Board. Latest Syllabus.

Chapter 1: Introduction to Partnership and Partnership Final Accounts

Chapter 2: Accounts of ‘Not for Profit’ Concerns

Chapter 3: Reconstitution of Partnership (Admission of Partner)

Chapter 4: Reconstitution of Partnership (Retirement of Partner)

Chapter 5: Reconstitution of Partnership (Death of Partner)

Chapter 6: Dissolution of Partnership Firm

Chapter 7: Bills of Exchange

Chapter 8: Company Accounts - Issue of Shares

Chapter 9: Analysis of Financial Statements

Chapter 10: Computer In Accounting

 

ACCOUNTS BOARD PAPERS

HSC Accounts March 2020 Board Paper With Solution

MARCH 2014 : View | PDF Download

OCTOBER 2014 View | PDF Download

MARCH 2015 View | PDF Download

JULY 2015 View | PDF Download

MARCH 2016 View | PDF Download

JULY 2016 View | PDF Download

JULY 2017 View | PDF Download

MARCH 2017 View | PDF Download

MARCH 2018 View | PDF Download

JULY 2018 View | PDF Download

MARCH 2019 View | PDF Download

MARCH 2020 View | PDF Download

 

ACCOUNTANCY PAPER PATTERN: New 2020, Old View | PDF Download

PROFORMA OF TRADING ACCOUNT: View | PDF Download

PROFORMA OF PROFIT & LOSS ACCOUNT: View | PDF Download

PROFORMA OF BALANCE SHEET: View | PDF Download

FINAL ACCOUNT ADJUSTMENTS: View | PDF Download

SINGLE ENTRY: View : PDF Download

FINAL ACCOUNT: View | PDF Download

NPO : View | PDF Download

BILL OF EXCHANGE: View | PDF Download

FORMAT OF BILL: View | PDF Download

ADMISSION OF A PARTNER: View | PDF Download

RETIREMENT OF PARTNER: View | PDF Download

DEATH OF PARTNER: View | PDF Download

ACCOUNTING FOR SHARES : View | PDF Download

DISSOLUTION OF PARTNERSHIP FIRM : View | PDF Download

VALUATION OF GOODWILL WITH SOLUTION: View | PDF Download

FORMAT OF FINAL ACCOUNT : View | PDF Download

INTRODUCTION TO PARTNERSHIP: View | PDF Download 

 

ACCOUNTANCY PAPER PATTERN

SINGLE ENTRY

FINAL ACCOUNT

NPO

BILL OF EXCHANGE

BILL OF EXCHANGE [FORMAT].

ADMISSION OF A PARTNER

RETIREMENT OF PARTNER

DEATH OF PARTNER

ACCOUNTING FOR SHARES

DISSOLUTION OF PARTNERSHIP FIRM

VALUATION OF GOODWILL WITH SOLUTION

FORMAT OF FINAL ACCOUNT

INTRODUCTION TO PARTNERSHIP

 

ACCOUNTS BOARD PAPERS WITH SOLUTION

 

MARCH 2014, OCTOBER 2014, MARCH 2015, JULY 2015, MARCH 2016, JULY 2016.JULY 2017, MARCH 2017, MARCH 2018,  JULY 2018  MARCH 2019 MARCH 2020

 

IMPORTANT PRACTICE PAPER FOR BOARD EXAM 2020

 

ACCOUNTS SAMPLE PAPER ONE  

ACCOUNTS SAMPLE PAPER TWO

ACCOUNTS SAMPLE PAPER THREE

OBJECTIVE QUESTIONS

ANSWER IN ONE SENTENCE EACH

SELECT THE MOST APPROPRIATE ALTERNATIVE

WRITE THE WORD/ TERM / PHRASE

STATE TRUE OR FALSE


No comments:

Post a Comment

PDF FILE TO YOUR EMAIL IMMEDIATELY PURCHASE NOTES & PAPER SOLUTION. @ Rs. 50/- each (GST extra)

HINDI ENTIRE PAPER SOLUTION

MARATHI PAPER SOLUTION

SSC MATHS I PAPER SOLUTION

SSC MATHS II PAPER SOLUTION

SSC SCIENCE I PAPER SOLUTION

SSC SCIENCE II PAPER SOLUTION

SSC ENGLISH PAPER SOLUTION

SSC & HSC ENGLISH WRITING SKILL

HSC ACCOUNTS NOTES

HSC OCM NOTES

HSC ECONOMICS NOTES

HSC SECRETARIAL PRACTICE NOTES

2019 Board Paper Solution

HSC ENGLISH SET A 2019 21st February, 2019

HSC ENGLISH SET B 2019 21st February, 2019

HSC ENGLISH SET C 2019 21st February, 2019

HSC ENGLISH SET D 2019 21st February, 2019

SECRETARIAL PRACTICE (S.P) 2019 25th February, 2019

HSC XII PHYSICS 2019 25th February, 2019

CHEMISTRY XII HSC SOLUTION 27th, February, 2019

OCM PAPER SOLUTION 2019 27th, February, 2019

HSC MATHS PAPER SOLUTION COMMERCE, 2nd March, 2019

HSC MATHS PAPER SOLUTION SCIENCE 2nd, March, 2019

SSC ENGLISH STD 10 5TH MARCH, 2019.

HSC XII ACCOUNTS 2019 6th March, 2019

HSC XII BIOLOGY 2019 6TH March, 2019

HSC XII ECONOMICS 9Th March 2019

SSC Maths I March 2019 Solution 10th Standard11th, March, 2019

SSC MATHS II MARCH 2019 SOLUTION 10TH STD.13th March, 2019

SSC SCIENCE I MARCH 2019 SOLUTION 10TH STD. 15th March, 2019.

SSC SCIENCE II MARCH 2019 SOLUTION 10TH STD. 18th March, 2019.

SSC SOCIAL SCIENCE I MARCH 2019 SOLUTION20th March, 2019

SSC SOCIAL SCIENCE II MARCH 2019 SOLUTION, 22nd March, 2019

XII CBSE - BOARD - MARCH - 2019 ENGLISH - QP + SOLUTIONS, 2nd March, 2019


BUY FROM PLAY STORE

DOWNLOAD OUR APP


HOW TO PURCHASE OUR NOTES?



S.P. Important Questions For Board Exam 2020


O.C.M. Important Questions for Board Exam. 2020


Economics Important Questions for Board Exam 2020


Chemistry Important Question Bank for board exam 2020


Physics – Section I- Important Question Bank for Maharashtra Board HSC Examination


Physics – Section II – Science- Important Question Bank for Maharashtra Board HSC 2020 Examination


MUST REMEMBER THINGS on the day of Exam


Are you prepared? for English Grammar in Board Exam.


Paper Presentation In Board Exam


How to Score Good Marks in SSC Board Exams


Tips To Score More Than 90% Marks In 12th Board Exam


How to write English exams?


How to prepare for board exam when less time is left


How to memorise what you learn for board exam


No. 1 Simple Hack, you can try out, in preparing for Board Exam

How to Study for CBSE Class 10 Board Exams Subject Wise Tips?

JEE Main 2020 Registration Process – Exam Pattern & Important Dates

NEET UG 2020 Registration Process Exam Pattern & Important Dates

How can One Prepare for two Competitive Exams at the same time?

8 Proven Tips to Handle Anxiety before Exams!