12th Accountancy Weekly Test -2 ( Ratio Analysis )

St. Britto Hr. Sec. School - Madurai

12th Accountancy Weekly Test -2 ( Ratio Analysis )-Aug 2020

Time : 1.30 Hours

Part - A

Generic 2 - Answer All Question

What is meant by accounting ratios?

Calculate quick ratio of Ananth Constructions Ltd from the information given below.

Particulars Rs.

Total current liabilities 1,00,000

Total current assets 2,50,000

Inventories 50,000

Prepaid expenses 15,000

Particulars	Rs.
Total current liabilities	1,00,000
Total current assets	2,50,000
Inventories	50,000
Prepaid expenses	15,000

From the following information calculate capital gearing ratio:

Balance Sheet (Extract) as on 31.03.2018

Particulars Rs.

I EQUITY AND LIABILITIES

1. Shareholders' funds

  (a) Share capital

  Equity share capital 2,00,000

  6% Preference share capital 1,00,000

  (b) Reserves and surplus

  General reserve 1,25,000

  Surplus 75,000

2. Non-current liabilities

  Long-term borrowings (8% Debentures) 2,00,000

3. Current liabilities

  Trade payables 1,50,000

  Provision for tax 50,000

Total 9,00,000

Balance Sheet (Extract) as on 31.03.2018
Particulars	Rs.
I EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share capital
Equity share capital	2,00,000
6% Preference share capital	1,00,000
(b) Reserves and surplus
General reserve	1,25,000
Surplus	75,000
2. Non-current liabilities
Long-term borrowings (8% Debentures)	2,00,000
3. Current liabilities
Trade payables	1,50,000
Provision for tax	50,000
Total	9,00,000

State any two limitations of ratio analysis.

From the following Balance Sheet of Pioneer Ltd. calculate proprietary ratio:

Balance sheet of Pioneer Ltd. as on 31.3.2019

Particulars Rs.

I EQUITY AND LIABILITIES

1. Shareholders' funds

  (a) Share capital

  (i) Equity share capital 1,00,000

  (ii) Preference share capital 75,000

(b) Reserves and surplus 25,000

2. Non-current liabilities

  Long-term borrowings -

3. Current liabilities

  Trade payables 2,00,000

Total 4,00,000

II ASSETS

1. Non-current assets

  (a) Fixed assets 2,75,000

  (b) Non-current investments 50,000

2. Current assets

  Cash and Cash equivalents 75,000

Total 4,00,000

Balance sheet of Pioneer Ltd. as on 31.3.2019
Particulars	Rs.
I EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share capital
(i) Equity share capital	1,00,000
(ii) Preference share capital	75,000
(b) Reserves and surplus	25,000
2. Non-current liabilities
Long-term borrowings	-
3. Current liabilities
Trade payables	2,00,000
Total	4,00,000
II ASSETS
1. Non-current assets
(a) Fixed assets	2,75,000
(b) Non-current investments	50,000
2. Current assets
Cash and Cash equivalents	75,000
Total	4,00,000

What is meant by debt equity ratio?

Calculate current ratio from the following information:

Particulars Rs. Particulars Rs.

Current investments 80,000 Trade creditors 1,60,000

Inventories 1,60,000 Bills payable 1,00,000

Trade receivables 4,00,000 Expenses payable 1,40,000

Cash and cash equivalents 1,20,000

Prepaid expenses 40,000

What does return on investment ratio indicate?

Following is the balance sheet of Magesh Ltd. as on 31st March, 2019:

Particulars Rs.

I EQUITY AND LIABILITIES

1. Shareholders’ funds

  Equity share capital 2,00,000

2. Non-current liabilities

  Long term borrowings 50,000

3. Current liabilities

  (a) Short-term borrowings 17,000

  (b) Trade payables 25,000

  (c) Other current liabilities

Expenses payable 3,000

  (d) Short-term provisions 5,000

Total 3,00,000

II ASSETS Rs.

1. Non-current assets

Fixed assets

  (a) Tangible assets 1,50,000

  (b) Trade receivables 70,000

  (c) Cash and cash equivalents 30,000

  (d) Other current assets

Prepaid expenses 5,000

Total 3,00,000

Calculate:
(i) Current ratio
(ii) Quick ratio

Particulars	Rs.
I EQUITY AND LIABILITIES
1. Shareholders’ funds
Equity share capital	2,00,000
2. Non-current liabilities
Long term borrowings	50,000
3. Current liabilities
(a) Short-term borrowings	17,000
(b) Trade payables	25,000
(c) Other current liabilities
Expenses payable	3,000
(d) Short-term provisions	5,000
Total	3,00,000
II ASSETS	Rs.
1. Non-current assets
Fixed assets
(a) Tangible assets	1,50,000
(b) Trade receivables	70,000
(c) Cash and cash equivalents	30,000
(d) Other current assets
Prepaid expenses	5,000
Total	3,00,000

What is quick ratio?

Part - B

Generic 5 - Answer All Question

From the following statement of profit and loss of Mukesh Ltd. calculate
(i) Gross profit ratio
(ii) Net profit ratio

Particulars Amount
Rs.

I. Revenue from operations 5,00,000

II. Other income

Income from investment 40,000

III. Total revenues (I+II) 5,40,000

IV. Expenses

Purchase of stock in trade 1,80,000

Changes in inventories 20,000

Employee benefits expense 30,000

Other expenses 1,10,000

Provision for tax 50,000

Total expenses 3,90,000

V. Profit for the year 1,50,000

Particulars	Amount Rs.
I. Revenue from operations	5,00,000
II. Other income
Income from investment	40,000
III. Total revenues (I+II)	5,40,000
IV. Expenses
Purchase of stock in trade	1,80,000
Changes in inventories	20,000
Employee benefits expense	30,000
Other expenses	1,10,000
Provision for tax	50,000
Total expenses	3,90,000
V. Profit for the year	1,50,000

Calculate the current ratio from the following information.

Particulars Rs. Particulars Rs.

Current investments 40,000 Fixed assets 5,00,000

Inventories 2,00,000 Trade creditors 80,000

Trade debtors 1,20,000 Bills payable 50,000

Bills receivable 80,000 Expenses payable 20,000

Cash and cash equivalents 10,000 Non-current liability 3,00,000

Particulars	Rs.	Particulars	Rs.
Current investments	40,000	Fixed assets	5,00,000
Inventories	2,00,000	Trade creditors	80,000
Trade debtors	1,20,000	Bills payable	50,000
Bills receivable	80,000	Expenses payable	20,000
Cash and cash equivalents	10,000	Non-current liability	3,00,000

Following is the extract of the balance sheet of Babu Ltd., as on 31st March, 2018:

Particulars Amount
Rs.

I EQUITY AND LIABILITIES

1. Shareholders' funds

  (a) Share capital 70,000

  (b) Reserves and surplus 25,000

2. Non-current liabilities

  Long-term borrowings 30,000

3. Current liabilities

  (a) Trade payables 20,000

  (b) Other current liabilities 15,000

  (c) Short-term provisions 42,000

Total 2,02,000

Net profit before interest and tax for the year was Rs.25,000. Calculate the return on capital employed for the year.

Particulars	Amount Rs.
I EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share capital	70,000
(b) Reserves and surplus	25,000
2. Non-current liabilities
Long-term borrowings	30,000
3. Current liabilities
(a) Trade payables	20,000
(b) Other current liabilities	15,000
(c) Short-term provisions	42,000
Total	2,02,000

Calculate operating profit ratio under the following cases.
Case 1: Revenue from operations Rs 10,00,000, Operating profit Rs.1,50,000.
Case 2: Revenue from operations Rs.15,00,000, Operating cost Rs.12,00,000.
Case 3: Revenue from operations Rs.20,00,000, Gross profit 30% on revenue from operations,
Operating expenses Rs.4,00,000

Calculate
(i) Inventory turnover ratio
(ii) Trade receivables turnover ratio
(iii) Trade payables turnover ratio and
(iv) Fixed assets turnover ratio from the following information obtained from Aruna Ltd.

Particulars As on 31st March, 2019 Rs. As on 31st March, 2019 Rs.

Inventory 3,60,000 4,40,000

Trade receivables 7,40,000 6,60,000

Trade payables 1,90,000 2,30,000

Fixed assets 6,00,000 8,00,000

Additional information:
(i) Revenue from operations for the year Rs. 35,00,000
(ii) Purchases for the year Rs. 21,00,000
(iii) Cost of revenue from operations Rs. 16,00,000.
Assume that sales and purchases are for credit.

Particulars	As on 31st March, 2019 Rs.	As on 31st March, 2019 Rs.
Inventory	3,60,000	4,40,000
Trade receivables	7,40,000	6,60,000
Trade payables	1,90,000	2,30,000
Fixed assets	6,00,000	8,00,000

From the following figures obtained from Arjun Ltd, calculate the trade payables turnover ratio and credit payment period (in days).

Particulars Rs

Credit purchases during 2018 – 2019 9,50,000

Trade creditors as on 1.4.2018 60,000

Trade creditors as on 31.3.2019 50,000

Bills payable as on 1.4.2018 45,000

Bills payable as on 31.3.2019 35,000

Particulars	Rs
Credit purchases during 2018 – 2019	9,50,000
Trade creditors as on 1.4.2018	60,000
Trade creditors as on 31.3.2019	50,000
Bills payable as on 1.4.2018	45,000
Bills payable as on 31.3.2019	35,000

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12th Accountancy Weekly Test -2 ( Ratio Analysis )

St. Britto Hr. Sec. School - Madurai

12th Accountancy Weekly Test -2 ( Ratio Analysis )-Aug 2020

Part - A

Generic 2 - Answer All Question

What is meant by accounting ratios?

Calculate quick ratio of Ananth Constructions Ltd from the information given below. Particulars Rs. Total current liabilities 1,00,000 Total current assets 2,50,000 Inventories 50,000 Prepaid expenses 15,000

State any two limitations of ratio analysis.

What is meant by debt equity ratio?

Calculate current ratio from the following information: Particulars Rs. Particulars Rs. Current investments 80,000 Trade creditors 1,60,000 Inventories 1,60,000 Bills payable 1,00,000 Trade receivables 4,00,000 Expenses payable 1,40,000 Cash and cash equivalents 1,20,000 Prepaid expenses 40,000

What does return on investment ratio indicate?

What is quick ratio?

Part - B

Generic 5 - Answer All Question

Comment

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Calculate quick ratio of Ananth Constructions Ltd from the information given below.

Particulars Rs.

Total current liabilities 1,00,000

Total current assets 2,50,000

Inventories 50,000

Prepaid expenses 15,000