Accounting Ratios — Accountancy STD 12 Commerce — Question

On April 01, 2015, a limited company was incorporated with an authorised capital of ₹ 40,000 divided into shares of ₹ 10 each. It offered to the public for subscription of 3,000 shares payable as follows:The shares were fully subscribed for by the public and application money duly received on April 15, 2015. The directors made the allotment on May 1, 2015. How will you record the share capital transactions in the books of a company if the amounts due has been duly received, and the company maintains the combined account for application and allotment.

Calculate any three of the following ratios with the help of the following information:

1. Operating Ratio.
2. Current Ratio.
3. Gross Profit Ratio.
4. Inventory Turnover Ratio.
5. Debt Equity Ratio

Information: Equity Share Capital ₹ 5,00,000; 12% Debentures ₹ 6,00,000; 9% Preference Share Capital ₹ 3,00,000; General Reserve ₹ 1,00,000; Revenue from Operations , ₹ 10,00,000; Opening Inventory ₹ 80,000; Purchases ₹ 6,00,000; Wages , 1,00,000; Closing Inventory ₹ 1,00,000; Selling and distribution expenses ₹ 20,000; Other current assets ₹ 5,00,000 and Current liabilities ₹ 3,00,000.

W Ltd. issued 10,000 shares of ₹ 100 each. During the year only ₹ 80 were called payable as follows:

On Application	₹ 25
On Allotment	₹ 20
On 1st Call	₹ 20
On IInd Call	₹ 15
Amounts were received as follows:
On 8,000 shares the full amount called
On 1,200 shares ₹ 65 per share
On 500 shares ₹ 45 per share
On 300 shares ₹ 25 per share

The directors forfeited those shares on which less than ₹ 65 per share were received. Show entries in the Cash Book and Journal and show the Share Capital in the Balance Sheet.

From the following information:

Calculate any three of the following:

1. Operating ratio.
2. Inventory turnover ratio.
3. Return on Capital Employed.
4. Liquid Ratio.

Following is the Common-Size Balance Sheet of Madurai Cotton Ltd:
Additional Information: Net Profit after Interest and Tax for the year ended 31st March 2014 and 31st March 2015 amounted to ₹ 4,50,000 and ₹ 5,76,000 respectively. Tax rate was 40%. You are required to:

1. Fill in the missing figures in the above Balance Sheet.
2. Calculate Return on Capital Employed.

Opening Inventory ₹ 29,000; Purchases ₹ 2,42,000; Revenue from Operations ₹ 3,20,000; Gross Profit Ratio is 25% on revenue from operations. Calculate Inventory Turnover ratio.

Hassan Limited took a loan of ₹ 30,00,000 froma bank against primary security worth ₹ 40,00,000 and issued 35,000, 6% debentures of ₹ 100 each as a collateral security. The company again after one year took a loan of ₹ 50,00,000 from bank against Plant as primary security and deposited 60,000, 6% debentures of ₹ 100 each as collateral security. Record necessary journal entries. How will you show the issue of debentures and bank loan in the balance sheet of the company.

From the following informations, calculate the Inventory Turnover Ratio and the Gross Profit Ratio:

State giving reasons which of the following transactions would Improve Reduce or Not change the Quick Ratio if Quick Ratio is (i) 1.5 : 1, (ii) 1 : 1 or (iii) 0.8 : 1.

1. Payment of Outstanding Liabilities
2. Debentures of ₹ 2,00,000 converted into equity shares.
3. Purchase of goods on Credit of 2 months.
4. B/R endorsed to Creditors.
5. Sale of goods Costing ₹ 50,000 for ₹ 45,000.
6. B/R drawn on a Debtor.
7. Paid rent ₹ 3,000 in advance.
8. Trade receivables included a debtor Sh. Ashok who paid his entire amount due ₹ 9,700.