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Accounting Ratios — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyAccounting Ratios6 Marks
Question
From the following informations calculate:
  1. Current Ratio.
  2. Quick Ratio.
  3. Operating Ratio.
  4. Gross Profit Ratio.
 
₹
 
₹
Current Assets
70,000
Operating Expenses
40,000
Current Liabilities
35,000
Revenue from Operations
1,20,000
Inventory
30,000
Cost of Revenue from Operations
60,000
✓

Answer

  1. Current Ratio $=\frac{\text{Current Assets}}{\text{Current Liabilities}}$
Current Assets $=\frac{ ₹ \ 70,000}{ ₹ \ 35,000}=2:1$
  1. Quick Ratio $=\frac{\text{Liquid Assets}}{\text{Current Liabilities}}$
$=\frac{\text{Current Assets - Inventory}}{\text{Current Liabilities}}$

$=\frac{ ₹ \ 70,000 - ₹ \ 30,000}{ ₹ \ 35,000}$

$=\frac{ ₹ \ 40,000} { ₹ \ 35,000}=1.14:1$
  1. Operating Ratio $=\frac{\text{Cost of Revenue from Operations + Operating Expenses}}{\text{Net Revenue from Operations}}\times100$
$=\frac{ ₹ \ 60,000 +₹\ 40,000 }{ ₹ \ 1,20,000}\times100$

$=\frac{ ₹ \ 1,00,000}{ ₹ \ 1,20,000}\times100= 83.33\%$
  1. Gross Profit Ratio $=\frac{\text{Gross Profit}}{\text{Net Revenue from Operations}}\times100$
$= \frac{\text{Revenue from Operations - Cost of Revenue from Operations}}{\text{Net Revenue from Operations}}\times100$

$=\frac{ ₹ \ 1,20,000- ₹ \ 60,000}{ ₹ \ 1,20,000}\times100$

$=\frac{ ₹ \ 60,000}{ ₹ \ 1,20,000}\times100=50\%$

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