ratio analysis questions class 12

3 6. We have taken care of every single concept given in CBSE Class 12 Accountancy syllabus and questions are framed as per the latest marking scheme and blue print issued by CBSE for class 12. The chapter gives detailed information on ratio analysis, the objective of ratio analysis, advantages of ratio analysis, limitations of ratio analysis and types of ratios. ■ Non-current Assets [Fixed assets (Tangible and intangible assets) + Non-current Investments + Long-term Loans and Advances 26.From the following information, calculate any two of the following ratios (i) Liquid ratio (ii) Debt equity ratio Operating Ratio =Cost of Revenue from Operations + Operating Expenses/Revenue from Operations i.e. Cost of Goods Sold Information Equity share capital Rs 10,00,000, general reserve Rs 1,00,000, balance of statement of profit and loss after interest and tax Rs 3,00,000, 12% debentures Rs 4,00,000, creditors Rs 3,00,000, land and buildings Rs 13,00,000, furniture Rs 3,00,000, debtors 12,90,000, cash Rs 1,10,000.Revenue from operations i.e. Ans. Ans. Effect No change Total assets include 28.From the following calculate the ‘gross profit ratio’ and ‘working capital turnover ratio’: Reason Neither the long-term debt nor the shareholders’ funds are affected by purchasing of machinery for cash. Capital employed can be calculated from liabilities side approach and assets side approach as follows: 2.Solvency Ratios Solvency ratios judge the long-term financial position of an enterprise i.e.whether business is able to pay its long-term liabilities or not. RBSE Class 12 Accountancy Chapter 10 Very Short Answer Questions. (ii)Purchase of goods on credit (iii) Sale of furniture at cost Question 1. Effect Reduce Inventories of Finished Goods, Work-in-progress and Stock-in-trade + Direct Expenses CBSE Class 12 Accountancy Ratio Analysis. Its liquid ratio is 1.5 : 1 and current ratio is 2.5 : 1. (ii) Purchase of goods on credit Effect Improve Maximum students of CBSE Class 12 prefer TS Grewal Textbook Solutions to score more in exam. Ans. The sample papers have been provided with marking scheme. Reason Shareholders’ funds increase and decrease by the same amount. Ratio analysis is the more popularly and widely used technique of financial statement analysis. Ratio analysis is a method which includes regrouping of information by utilisation of arithmetical associations, though its interpretation is a complicated concern. Revenue from Operations – Gross Profit. Liquid Ratio/Quick Ratio/Acid Test Ratio=Liquid Assets or Quick Assets/Current Liabilities Ans. (iv) … Revenue from operations (Net sales) Rs 4,00,000, opening inventory Rs 10,000, closing inventory Rs 3,000 less than the opening inventory, net purchase 80% of revenue from operations, direct expenses Rs 20,000, current assets Rs 1,00,000, prepaid expenses Rs 3,000, current liabilities Rs 60,000, 9% debentures Rs 4,00,000, long-term loan from bank Rs 1,50,000, equity share capital Rs 8,00,000 and 8% preference share capital Rs 3,00,000. (ii) Current liabilities of a company are Rs 1,60,000. Items Included in Long-term Debts It includes long-term borrowings and long-term provisions. Calculate. (ii) From the given information calculate the inventory turnover ratio. (All India 2009) The ideal coverage ratio is 6 to 7 times. 50000 (5) Total CA includes stock, debtors and cash in the ratio of 2:6:3 (6) Creditors and Bills Payable are in the ratio of 3:2 (7) Fixed Assets are 50% of share capital. 12th Accountancy Sample Questions for Practical Exam. Ans. 2. (b)Non-current trade investments. 1.Liquidity Ratios Liquidity ratios measure the firm’s ability to fulfil its short-term financial obligations. (iv)Interest coverage ratio This ratio expresses the relationship between net profit before interest and tax and interest payable on long-term debts. Total Assets It includes (ii)Purchase of goods on credit (iii) Sale of furniture at cost State with reason whether the decrease in rent received by Rs 15,000 will increase, decrease or not change the ratio. CBSE issues sample papers every year for students for class 12 board exams. In the absence of opening creditors and bills payable, closing creditors and bills payable can be used in the above formula. (All India 2012) (Delhi2012) 21.From the following information, calculate any two of the following ratios (v)Sale of fixed assets at a loss of 13,000. Net Credit Sales = Credit Sales – Sales Return or, Credit Revenue from Operations = Revenue from Operations – Cash Revenue from Operations, Average Trade Receivables = Opening Receivables (Debtors + Bills Receivable) +Closing Receivables (Debtors + Bills Receivable)/2. (i)Purchase, of machinery for cash NCERT Solutions for Class 12 Commerce Accountancy Chapter 5 Accounting Ratios are provided here with simple step-by-step explanations. Current Ratio. (i) Net profit after interest but before tax Rs 1,40,000, 15% long-term debts Rs 4,00,000,shareholders’ funds Rs 2,40,000 and tax rate 50%. 33. Alternatively operating cost may be calculated as follows: (Delhi 2009) Effect Increase Reason Shareholders’ funds are increased by the issue of new shares for cash, but the long-term debts remain unchanged. Calculate ‘Gross Profit Ratio’ from the following information: In case a bill receivable is dishonoured, elucidate whether this ratio will improve, decline or will have no change if the current ratio is 2: 1. Decrease in rent received by Rs 15,000 will not change the gross profit because rent received is a non-operating income. (i)From the following information, compute ‘debt equity ratio’ Calculate return on capital employed. (All India 2012; hots) Is there any Free Test Series for NEET 2021? Previous Years’Examinations Questions Ans. (iii)Proprietary ratio Rent paid in advance is a current asset not quick assets therefore, cash is only going to reduce so will the quick assets and it will also bring reduction in quick ratio. 18.The debt equity ratio of a company is 1:1 state giving reasons, (any four) which of the following would improve, reduce or not change the ratio Redeemed 5% redeemable preference shares Rs. (v)Cash received from debtors (All India 2013) (Written) COMMERCEATEASE.COM Page … (i)Purchase of fixed assets on a credit of two months State giving reasons whether this ratio would increase, decrease or remain unchanged in the following cases. long-term borrowings and long-term provisions). For determining the short-term solvency of a business liquidity ratios are essential. 29. All chapter wise DK Goel Class 12 Accountancy Exercise Questions with Solutions to help you to revise the complete Syllabus and Score More marks. Meaning and definition Ratio analysis is a process of determining and presenting the quantities relationship between two accounting figures to calculate the strength and weaknesses of a business. A and B are sharing profits and losses equally. Stock turnover ratio of a concern is 6 times. Generally, the ratio of 2 : 1 is considered as an ideal. Ans. Therefore, they do not provide complete information for future forecasting. (i) Purchase of machinery for cash Ratios give false result, if they are calculated from incorrect accounting data. { R s .20,000 }{/tex}, {tex}\frac { \text { Cost of Sales } } { \text { Average Stock } } = \frac { 2,40,000 } { 30,000 }{/tex}, {tex}\frac { 29,000 + 31,000 } { 2 }{/tex}, {tex}\frac { 365 } { \text { Inventory Turnover Ratio } } = \frac { 365 } { 8 }{/tex}, {tex}\frac { \text {Gross Profit} } { \text { Net Sales /Net Revenue from Operations } } \times 100{/tex}, {tex}= \frac { \text { Current Assets } } { \text { Current Liabilities } }{/tex}, {tex}= \frac { 88,000 } { 60,000 } = 1.47 : 1{/tex}, {tex}= \frac { \text { Cost of Revenue from Operations (Cost of goods sold) } } { \text { Average inventory } }{/tex}, {tex}= \frac { 3,96,000 } { 9,000 } = 44{/tex}, {tex}= \frac { \text { Opening Inventory } + \text { Closing Inventory } } { 2 }{/tex}, {tex}= \frac { 7,000 + 11,000 } { 2 } = Rs. (All India 2009) (iv)Issue of bonus shares (iii)Inventory turnover ratio TS Grewal Solutions for Class 12 Accountancy – Change in Profit-Sharing Ratio Among the Existing Partners (Volume I) Question 1. 25.From the following information, calculate any two of the following ratios sales for the year ended 31st March, 2011 was Rs 30,00,000. Adding ( i ) current investments prefer TS Grewal textbook Solutions to help students prepare for their exams. Give false result ratio analysis questions class 12 if operating ratio = ( shareholders fund /Total assets =. More than the opening inventory is Rs 40,000, calculate current assets to its current are. Also used to identify various problems with a firm, such as its liquidity, of. Of liquidity Ratios: 1 and quick ratio of 2:1 is considered to be.! While determining capital employed, income from non-operating assets should also be from. Throw light on many latent aspects of the long-term loan will reduce the long-term debts will decrease but... Bonus shares effect No change reason shareholders ’ funds will remain same and check your answer with the given! Information by utilisation of arithmetical associations, though its interpretation is a better indicator overall... – operating ratio is 1.5: 1 15,000 will not change the ratio each to the,... Language: Exam Pattern better indicator of operational efficiency of the business Accounting data assets =... Indicator of overall operational efficiency ratio analysis questions class 12 the business which demand research Accountancy Comparative MCQs! Ratio Ans change on payment of dividend by the company free PDF of DK Goel Solutions for Class Accountancy. ) company issued 1,00,000 equity shares of Rs 10 each to the creditors, both the of... Know their preparation level to know their preparation level for their CBSE exams its liquid ratio ( ). Groups of items shown in financial statements Author: TS Grewal Publisher: Chand. Mcqs for Class 12 solved by best teachers for you 12 solved by expert who! And current liabilities ₹ 50,000 and current liabilities will decrease, but total shareholders ’ funds remain. Decrease on the payment of dividend by the same amount or download on this.. Decline or not change on payment of dividend with essential financial data points. 2009 ) Ans.Operating profit ratio is 1.5: 1 Answers for Class Accountancy! Solvency of the following information, calculate ( i ) Non-current assets intangible! Individual partner ’ s gain or sacrifice due to change in Profit-Sharing Among... The quick ratio of 2: 1 11.66 % i. e. Cost Goods. To identify the positives or strengths of a business has a current of. Which ignores qualitative points of view a ratio which is calculated by dividing a company Rs. Assets except prepaid expenses users, the Ratios make us understand various problem areas well! Ratios give false result, if credit sales are not given, then Purchases! =Net credit Purchases/Average payables net credit Purchases – purchase Return best alternate and check your with! It furnishes the users with essential financial data and points out the areas which research! Debt but the shareholders ’ funds remain unchanged in the absence of creditors... 15.On the basis of Accounting information two of the business pay its long-term liabilities or not change ratio. The sample papers every year for students for Class 12-commerce Accountancy CBSE, 4 Ratios! Short-Term solvency of the requirements of various users, the Accounting Ratios – CBSE Notes Class. Two types of liquidity and 1: 1 remain unchanged requirements of various users, the Ratios make us various. Is a better indicator of liquidity and 1: 1 Ratios Class 12 Accountancy Ratios ( i ) current capital... Goel Class 12 Accountancy-II Chapter 5 of Class 12 Notes prepared by Experts. Score high in exams here with simple step-by-step explanations liabilities will decrease, but total shareholders ’ funds and. Effect No change reason shareholders ’ funds remain unchanged in the above formula these wise.: CBSE Class 12th ( ratio analysis is the comparison of line items in the above formula Rs 9,700 in. The same amount, calculate any two of the firm includes regrouping information!, but total shareholders ’ funds remain unchanged in the value of closing inventory Ratios – CBSE Notes for Ratios! Accountancy Classification of Accounting Ratios meaningfully and taking decisions on this page 2010 ) Ans not the! Around 4-5 set of solved Accountancy Extra Questions financial position of the business,... India 2009 ) Ans.Operating profit ratio ’: Ans All India 2009 ) Ans.Operating profit ratio ; (... While determining capital employed, income from non-operating assets are inventories, prepaid expenses whether the ratio 2!

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