Problem 1: The following is the Balance Sheet of a company as on 31st March: Problem 2: From the following particulars found in the Trading, Profit and Loss Account of A Company Ltd., work out the operation ratio of the business concern: This ratio indicates whether investment in stock is within proper limit or not. On the other hand where there is a lot of fluctuation in the price of stock it is always advisable to compute quick ratio and avoid the stock figure because it will reduce the authenticity of liquidity measure. The accountant of the firm is interested in maintaing a Current Ratio of 2:1 by paying off a part of the Current Liabilities. Compute amount of goods that should be purchased on credit. (a) inventory turnover and current ratio RD Sharma class 12 Solutions Current Assets ₹ 3,00,000; Current Liabilities ₹ 1,00,000. If Current ratio is 4 : 1 and liquid ratio is 1:1, calculate value of current assets, liquid assets and stock. The excess of current assets over current liabilities provides a measure of safety margin available against uncertainty in realisation of current assets and flow of funds. (b) Balance Sheet Ratios: like Current Ratio, Debt Equity Ratio, etc. (i) The following groups of ratios primarily measure risk Calculate the current assets and current liabilities. Discuss the importance of current and liquid ratio. Answer (c) 47 days, (v) …………… are especially interested in the average payment period, since it provides them with a sense of the bill-paying patterns of the firm. Operating expenses normally include (a) administrative and office expenses and (b) selling and distribution expenses. Following is the Balance Sheet of Rohit and Company as on March 31, 2006. (d) liquid ratio, inventory If you have any query regarding TS Grewal Accountancy Class 12 Solutions Chapter 1 Accounting for Partnership Firms – Fundamentals, drop a comment below and we will get back to you at the earliest. ₹ 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold). (iii) Opening Inventory ₹1,00,000; Closing Inventory ₹60,000; Inventory Turnover Ratio 8 Times; Selling Price 25% above cost. For the year ended 31st March, 2017 its Gross Profit was ₹ 5,00,000; Equity Share Capital of the company was ₹ 10,00,000; Reserves and Surplus ₹ 2,00,000; Long-term Loan ₹ 3,00,000 and Non-current Assets were ₹ 10,00,000.Compute the 'Working Capital Turnover Ratio' of the company. X Ltd. has a Current Ratio of 3.5 : 1 and Quick Ratio of 2 : 1. The rate of tax was 20%. Helpful in Forecasting: Accounting ratios are very helpful in forecasting and preparing the plans for the future. Case 4: Cost of Revenue from Operations or Cost of Goods Sold ₹4,50,000; Gross Profit on Sales 20%; Cash Sales 25% of Net Credit Sales, Opening Trade Receivables ₹90,000; Closing Trade Receivables ₹60,000. Opening Inventory ₹80,000; Purchases ₹4,30,900; Direct Expenses ₹4,000; Closing Inventory ₹1,60,000; Administrative Expenses ₹21,100; Selling and Distribution Expenses ₹40,000; Revenue from Operations, i.e., Net Sales ₹10,00,000. (i) Gross Profit Ratio (ii) Inventory Turnover Ratio (iii) Current Ratio (iv) Liquid Ratio Calculate the value of current liabilities, liquid assets and stock. 1,00,000 and quick ratio is 2:1 Calculate current ratio. (iii) Redemption of debentures by cheque ₹2,00,000. Sales is Rs. The formula for calculating inventory turnover ratio is as follows The purpose of this ratio is to indicate the percentage of the owner’s funds invested in fixed assets. (c) Bills Receivable endorsed to a creditor. XYZ Limited's Inventory is ₹3,00,000. 2,00,000. (c) liquidity, activity and debt Revenue from Operations: Cash Sales ₹5,20,000; Return ₹20,000. The functional ratios are further divided into the following categories (c) current ratio, inventory (iii) Redeemed 7% Redeemable Preference Shares ₹ 3,00,000. (e) goods costing ₹ 10,000 withdrawn for personal use. There are two different ways to measure the liquidity of a firm first through current ratio of the firm and second through quick ratio of the firm. Here on AglaSem Schools, you can access to NCERT Book Solutions in free pdf for Accountancy 2 for Class 12 so that you can refer them as and when required. Question 1. Who are the users of financial ratio analysis? Additional Information: Net Profit before Tax for the year 2018-19 is rs 9,72,000. Chapter 5 of Class 12 Accountancy extensively focuses on explaining the meaning of accounting Ratios, objective and advantages of ratio analysis, limitations of ratio analysis. In this regard management design various policy measures and draft future plans. TS Grewal Solutions for Class 12 Accountancy – Company Account – Accounting for Share Capital (Volume II) Question 1. Equity Share Capital ₹ 15,00,000; Gross Profit on Revenue from Operations, i.e., Net Sales `33 1/3`%;  Cost Revenue from Operatins or Cost of Goods Sold ₹ 20,00,000; Current Assets ₹ 10,00,000; Current Liabilities ₹ 2,50,000. From the following information, calculate Gross Profit Ratio: Calculate Gross Profit Ratio from the following data: Average Inventory ₹3,20,000; Inventory Turnover Ratio 8 Times; Average Trade Receivables ₹4,00,000; Trade Receivables Turnover Ratio 6 Times; Cash Sales 25% of Net Sales. On the other hand, insurance company involved in service business and involved in delivering service there is no question of inventory because service is perishable in nature and cannot be stored. (c) solvency (d) profitability Calculate Return on Investment. NCERT Solutions for Class 12th English Vistas (c) debt (d) profitability In this way, they are always interested in Liquidity Ratios like, Current Ratio, Quick Ratios etc. Answer Yes it is true that the liquidity of a business firm is measured by its ability to pay its long term obligations as they become due. From the following, Answer False. In this way they are interested in calculating Long term Solvency Ratios like, Debt-Equity Ratio, Proprietory Ratio, Total Assets to Debt Ratio, Interest Coverage Ratio, etc. What relationships will be established to study? CBSE Class 12 Accountancy TS Grewal-II (2019) Solutions are created by experts of the subject, hence, sure to prepare students to score well. The formula for calculating inventory turnover ratio is as follows, (b)Debtor Turnover Ratio :Debtor turnover ratio or accounts receivable turnover ratio indicates the velocity of debt collection of a firm. (a) average payment period (b) current ratio Compute Trade Receivables Turnover Ratio from the following: ₹ 1,75,000 is the Credit Revenue from Operations, i.e., Net Credit Sales of an enterprise. (c) average collection period (d) current asset turnover Quick assets are those assets which can get converted into cash easily in case of emergency. These ratios reveal the current financial position of the business. (ii) Equity Investors: The prime concern of investors before investing in shares is to ensure the security of their principle and return on investment. Question 2. Check the below NCERT MCQ Questions for Class 12 Accountancy Chapter 10 Accounting Ratios with Answers Pdf free download. Calculate Inventory Turnover Ratio; Gross Profit Ratio; and Opening Ratio. CBSE Class 12 Physics Calculate following ratios on the basis of the following information:(i) Gross Profit Ratio;(ii) Current Ratio;(iii) Acid Test Ratio; and (iv) Inventory Turnover Ratio. The net profits are obtained after deducting income-tax and, generally, non-operating expenses and incomes are excluded from the net profits for calculating this ratio. Revenue from Operations ₹ 9,00,000; Gross Profit 25% on Cost; Operating Expenses ₹ 45,000. (ii) Charging depreciation of ₹25,000 on machinery. (a) Inventory Turnover (b) Debtor Turnover NCERT Solutions for Class 12 Accountancy Part 1. Shine Limited has a current ratio 4.5:1 and quick ratio 3:1; if the stock is 36,000, calculate current liabilities and current assets. (a) Activity (b) Liquidity This ratio depicts the relationship between amount of profit utilise for paying interest and amount of interest payable. These ratios relate to sales or cost of goods sold. Importance of Quick Ratio :It helps in determining whether a firm has sufficient funds if it has to pay all its current liabilities immediately. Calculate Net Profit Ratio. The two basic components for the calculation of operating ratio are operating cost (cost of goods sold plus operating expenses) and net sales. Accounting ratios are used as an important tool of analysing the financial performance of the company over the yearsansdas comparative position among other companies in the industry. CBSE Class 12 Chemistry Find the value of the stock. From the following information, calculate Interest Coverage Ratio: From the following details, calculate Inventory Turnover Ratio: Cost of Revenue from Operations (Cost of Goods Sold) ₹5,00,000; Purchases ₹5,50,000; Opening Inventory ₹1,00,000.Calculate Inventory Turnover Ratio. Fixed Assets to Proprietor’s Fund Ratio: Fixed Assets to Proprietor’s Fund Ratio establish a relationship between fixed assets and shareholders’ funds. Answer Average stock = ? Accounting Ratios – CBSE Notes for Class 12 Accountancy Topic 1: Introduction 1. Closing Trade Receivables ₹ 4,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales ₹ 15,00,000. Download TS Grewal Solution Class 12 Chapter 4 Accounting Ratios 2020 2021 pdf, latest solutions for Accountancy latest book, Solutions for T.S. Free PDF download of Important Questions for CBSE Class 12 Accountancy Chapter 13 Accounting Ratios prepared by expert Accountancy teachers from latest edition of CBSE(NCERT) books, On CoolGyan.Org to score more marks in CBSE board examination. ‘ If the collection period is 36 days and year is assumed to be 360 days, calculate:(i)   Trade Receivables Turnover Ratio;(ii)  Average Trade Receivables;(iii) Trade Receivables at the end when Trade Receivables at the end are more than that in the beginning by ₹ 6,000. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. NCERT Solution for Class 12 Accountancy Chapter 5 - Accounting Ratios d. Working Capital Turnover Ratio: Working capital turnover ratio is used to measure the efficiency of a company in using its working capital to support the sales. Calculate Operating Profit Ratio. Comment. A company earns Gross Profit of 25% on cost. All solutions have been prepared by Class 12 Accountancy teachers at Studiestoday.com. (ii) Average Inventory ₹1,60,000; Inventory Turnover Ratio is 6 Times; Selling Price 25% above cost. Calculate following ratios on the basis of the given information:(i) Current Ratio;(ii) Acid Test Ratio;(iii) Operating Ratio; and (iv) Gross Profit Ratio. Calculate Operating Ratio from the following information:Operating Cost ₹ 6,80,000; Gross Profit 25%; Operating Expenses ₹ 80,000. Calculate Working  Capital Turnover Ratio. This will clear students doubts about any question and improve application skills while preparing for board exams. That’s why short term creditors are interested in timely payment of their debts in short run. (a) Debt Equity Ratio (b) Total Assets to Debt Ratio (c) Propietory Ratio. This is closely related to the ratio of operating profit to net sales. A very high current ratio is not a good sign as it reflects under utilisation or improper utilisation of resources. (f) Bills Receivable endorsed to a Creditor dishonoured. Calculate Trade Payables Turnover Ratio for the year 2018-19 in each of the alternative cases:Case 1 : Closing Trade Payables ₹ 45,000; Net Purchases ₹ 3,60,000; Purchases Return ₹ 60,000; Cash Purchases ₹ 90,000.Case 2 : Opening Trade Payables ₹ 15,000; Closing Trade Payables ₹ 45,000; Net Purchases ₹ 3,60,000. (e) Bills Payable discharged. NCERT Solutions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios. TS Grewal textbook solutions can be a core help for self-study and acts as a perfect self-help guidance for students. Gross Profit Ratio of a company is 25%. Question 22. It is also known as external internal equity ratio. NCERT Solutions for Class 12 Accountancy Part 2 Chapter 5 Accounting Ratios. There were no Long-term Investments.Calculate Current Ratio. (i) Purchases of Stock-in-Trade ₹50,000. Gopal Ltd. was registered with an authorised capital of ₹ 50,00,000 divided into Equity Shares of ₹ 100 each. (iv) Issued equity shares to the vendor of building purchased for ₹ 7,00,000. (b) liquid ratio, accounts debtors Net Credit Sales = Total Sales − Cash Sales2. Following is the Balance Sheet of Crescent Chemical Works Limited as at 31st March, 2019: (b) Short-term Provisions: Provision for Tax. (iv) Short Term Creditors :Short term creditors are those creditors who provide financial assistance through short term credit (Generally less than one year). DK Goel Solutions Class 12 Part 2 DK Goel Solutions Class 12 furnish a wide range of solutions that certainly supports the students to understand, analyse and solve them. (a) average collection period (b) inventory turnover Revenue from Operations ₹4,00,000; Gross Profit Ratio 25%; Operating Ratio 90%. It means if quick assets are just equal to the current liabilities they will be considered favourable with the view point of company’s credibility. A firm had Current Assets of ₹5,00,000. The following is the summarised Profit and Loss account and the Balance Sheet of Nigam Limited for the year ended March 31, 2007, Calculate (b) increase in the value of Closing Inventory by ₹ 40,000. Some of the most Important and popular profitability ratios are as under (b) Solvency Ratio :These ratios are calculated to determine long term solvency. (d) Payment of final Dividend already declared. Current Assets are ₹ 7,50,000 and Working Capital is ₹ 2,50,000. On the other hand where stock contributes a reasonably less amount it can be avoided and liquidity of that firm can be measured with the help of quick ratio. Sometimes quick ratio is calculated on the basis of quick liability instead of current liabilities. 90,000. Calculate Working Capital Turnover Ratio. It is generally expressed in percentage, Operating ratio measures the cost of operations per dollar of sales. Calculate Debt to Equity Ratio. Note :According to the ratio, current asset is less than current liability hence working capital should be negative. Proprietory Ratio/ Total Assets to Debt Ratio: Total assets to Debt Ratio or Proprietory Ratio are a variant of the debt equity ratio. Note (i) Acid test ratio, quick ratio and liquid ratio are one and the same. Question 5. 3,22,250. Compute Gross Profit Ratio from the following information:Cost of Revenue from Operations (Cost of Goods Sold) ₹5,40,000; Revenue from Operations (Net Sales) ₹6,00,000. The liquidity of a business firm is measured by its ability to satisfy its long term obligations as they become due? NCERT Solutions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios. Solution : Current Ratio = Current Assets / Current Liabilities. It is expressed as percentage. Calculate Trade payables Turnover Ratio from the following information:Opening Creditors ₹ 1,25,000; Opening Bills Payable ₹ 10,000; Closing Creditors ₹ 90,000; Closing bills Payable ₹ 5,000; Purchases ₹ 9,50,000; Cash Purchases ₹ 1,00,000; Purchases Return ₹ 45,000. The formula for calculating this ratio is as follows. (iii) Gross Profit is 25% of the Revenue from Operations. Quick liabilities are calculated by ignoring bank overdraft, if any. Here is a compilation of top thirteen accounting problems on ratio analysis with its relevant solutions. Click below to access free TS Grewal solutions. Reliability of Ratios: Since, ratios are calculated based on the financial information, if the information available is not correct ratios calculated using such information will also be incorrect. Cost of goods sold in the case of a trading concern would be equal to opening stock plus purchase, minus closing stock plus all direct expenses relating to purchases. (iv) Trade Receivables at the end are 3 Times more than that of in the beginning. The significance of ratios to the above mentioned users is as follows Compute Gross Profit Ratio, Working Capitat Turnover Ratio, Dept Equity Ratio and Proprietory Ratio from the fottowing information. (a) The only purpose of financial reporting is to keep the managers informed about the progress of operations. (c) Purchase of Stock-in-Trade for cash. The company offered for public subscription all the shares. Inventory is ₹ 6,00,000. Question 3. Solved Cbse Class 12 Accountancy Full Project(Comprehensive Project, Ratio Analysis and Cash Flow Statements with Conclusion) 2,065,308 views. (iii) Operating Ratio (iv) Gross Profit Ratio. The solutions not only explain the exercise questions but also the unit-wise and page-wise questions. (c) gross profit margin and operating ratio Study Materials > > > Career Class 10 Class 12 > Medical Engineering MBA NCERT Solutions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios. Answer (c) Solvency. Calculate Operating Profit Ratio. Question 8. But on the other hand, in case of those firms where the stock can be easily realised or sold off consideration of stock should be avoided and to measure the liquidity of that firm Quick ratio should be calculated, e.g., the inventories of a service sector company are very liquid as there are no stocks kept for sale, so in that case liquid ratio must be followed for measuring the liquidity of the firm. It is expressed in number of times. A firm normally has trade Receivables equal to two months' credit Sales. Students can download study material and notes for academic session 2020-2021 based on part 2 … Question 13. Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Accounting ratios. Chapter 4 Accounting Ratios. Reliability of Ratios: Since, ratios are calculated based on the financial information, if the information available is not correct ratios calculated using such information will also be incorrect. Ratio of Current Assets (₹3,00,000) to Current Liabilities (₹2,00,000) is 1.5:1. Answer True, (f) One ratios reflect both quantitative and qualitative aspects. 2. The following Balance Sheet and other information, calculate following ratios Calculate the amount of gross profit July 20, 2019 by Prasanna Leave a Comment. The purpose of this ratio is to indicate the percentage of the owner’s funds invested in fixed assets. Answer This is very much true that the financial ratio analysis is conducted by four groups of analysts : managers, equity investors, long term creditors and short term creditors. Liquid/Acid Test/Quick Ratio This ratio establishes relationship between Quick assets and Current liabilities. Chapter 5 Accounting Ratios. All the solutions of Accounting Ratios - Accountancy explained in detail by … Calculate Current Ratio. The standard for this ratio is 1:1. Question 2. NCERT Solutions for Class 12 Accountancy Part 2 Chapter 5 Accounting Ratios. Determine Current Liabilities and Working Capital before and after the payment was made. Financial ratio analysis are conducted by four groups of analysts : managers, equity investors, long term creditors and short term creditors. The formula for calculating Debtors turnover ratio is as follows, (c)Creditors/Payables Turnover Ratio :It compares creditors with the total credit purchases. (b) liquidity, activity and common stock myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. Question 6. Calculate individual partner’s gain or sacrifice due to change in ratio. There are many non operating expenses and incomes included in the profit and loss account which has nothing to do with the operations of the business such as loss by fire, loss by theft etc. (a) liquidity (b) activity In other words, generally the expenses charged to profit and loss account or operating expenses are excluded from the calculation of cost of goods sold. This ratio relates the shareholder’s funds to total assets. Shareholder’s funds include equity share capital plus all reserves and surpluses items. Calculate value of Current Liabilities, Liquid Assets and Inventory. You are required to calculate Return on Investment for the year 2018-19 with reference to Opening Capital Employed. (d) current ratio and average collection period Calculate Current Ratio after payment. Calculate 'Return on Investment' of Y Ltd. From the following Balance Sheet of Global Ltd., you are required to calculate Return on Investment for the year 2018-19: BALANCE SHEET OF GLOBAL LTD.as at 31st March, 2019, (a) Share Capital–Equity Shares of ₹ 10 each Fully paid. Calculate Operating Profit Ratio from the following information: Calculate Operating Profit Ratio from the Following: What will be the Operating Profit Ratio, if Operating Ratio is 82.59%? From the information given below, calculate any three of the following ratio: On the basis of the following information calculate: From the following, calculate (a) Debt to Equity Ratio; (b) Total Assets to Debt Ratio; and (c) Proprietary Ratio: From the following information related to Naveen Ltd., calculate (a) Return on Investment and (b) Total Assets to Debt Ratio:Information: Fixed Assets ₹ 75,00,000; Current Assets ₹ 40,00,000; Current Liabilities ₹ 27,00,000; 12% Debentures ₹ 80,00,000 and Net Profit before Interest, Tax and Dividend ₹ 14,50,000. What are important profitability ratios? A brief description of the above mentioned ratios is as follows. This is because, the heavy stocks like machinery, heavy tools etc. 10,000. The questions provided in TS Grewal-II (2019) Books are prepared in accordance with CBSE, thus holding higher chances of appearing on CBSE question papers. But here generally one question arises there are certain assets which cannot be converted into cash quickly such as stock and prepaid expenses. Calculate values of Current Assets, Liquid Assets and Inventory. Answer (c) Lenders and suppliers, (vi) The……………….. ratios provide the information critical to the long-run operation of the firm Question 4. Non-operating Expenses ₹2,000; Non-operating Income ₹22,000. Shareholders' Funds  ₹ 1,60,000; Total Debts ₹ 3,60,000; Current Liabilities ₹ 40,000.Calculate Total Assets to Debt Ratio. Calculate Return on Investment. Balance Sheet had the following amounts as at 31st March, 2019: Calculate ratios indicating the Long-term and the Short-term financial position of the company. Quick assets are those assets which can get converted into cash easily in case of emergency. Calculate Net Profit Ratio. (g) Purchases of Stock-in-Trade for cash. Question 3. The current ratio provides a better measure of overall liquidity only when a firm’s inventory cannot easily be converted into cash. Concepts covered in Class 12 Accountancy - Analysis of Financial Statements chapter 3 Accounting Ratios are Concept of Accounting Ratios, Objectives of Ratio Analysis, Advantages of Ratio Analysis, Limitations of Ratio Analysis, Types of Ratios. It is always observed that short term obligations are paid through current assest. Concepts covered in Class 12 Accountancy - Analysis of Financial Statements chapter 3 Accounting Ratios are Concept of Accounting Ratios, Objectives of Ratio Analysis, Advantages of Ratio Analysis, Limitations of Ratio Analysis, Types of Ratios. Afterwards it purchased goods for ₹30,000 on credit. In this case it is always advisable to follow the current ratio for measuring the liquidity of a firm. I 2019 Solutions for Class 12 Accountancy Chapter 2 - Accounting for Partnership Firms-Fundamentals The formula for calculating operating ratio is as follows, Operating Ratio :Operating ratio is the ratio of cost of goods sold plus operating expenses to net sales. The formula for the current ratio is as follows Calculate Operating Ratio. From the information given below, calculate Trade Receivables Turnover Ratio:Credit Revenue from Operations, i.e., Credit Sales ₹8,00,000; Opening Trade Receivables ₹1,20,000; and Closing Trade Receivables ₹2,00,000.State giving reason, which of the following would increase, decrease or not change Trade Receivables Turnover Ratio:(i) Collection from Trade Receivables ₹40,000. We hope the NCERT Solutions for Class 12 Accountancy Part II Chapter 5 Accounting Ratios, help you. What are liquidity ratios? Answer (b) Inventory turnover, (iii) The………..ratio may indicate the firm is experiencing stock outs and lost sales. Answer Accounting ratios are classified in two ways Categories as follows Following is the Balance Sheet of the Bharati Ltd. as at 31st March, 2019: Surplus, i.e., Balance in Statement of Profit and Loss: Add: Transfer from Statement of Profit and Loss. Opening Trade Receivables = Closing Trade Receivables − Excess of Closing Trade Receivables over Opening Trade Receivables.]. (ii) Functional Classification This classification of ratios is based on the functional need and the purpose for calculating ratio. (b) current ratio and liquid ratio Operating Profit Ratio :Operating Profit Ratio is the ratio of operating profit to net sales. NCERT Solutions for Class 12th English Flamingo Solved Accounting Ratios with Balance Sheet(vertical) and Statement of Profit and Loss - Cbse Class 12 … (ii) Revenue from Operations, Cash Sales ₹4,00,000; Credit Sales ₹1,00,000; Gross Profit ₹1,00,000; Office and Selling Expenses ₹50,000. A grocery store is a trading concern involved in trading i.e., buying and selling of goods and in this regards it is obvious to maintain some inventory in stores. (a) Customers (b) Stockholders Capital Employed ₹10,00,000; Fixed Assets ₹7,00,000; Current Liablities ₹1,00,000. Current Ratio/Working Capital Ratio: This ratio establish relationship between current assets and current liabilities. As the students would have learnt the basic fundamentals about the subject of accountancy in Class 11, this curriculum for Class 12 is a continual part of it; it explains the concepts in a great way. What do you mean by Ratio Analysis? (i) Current ratio (ii) Acid test ratio A limited company made Credit Sales of ₹ 4,00,000 during the financial period. Public applied for 4,50,000 shares and allotment was made to […] All exercise questions are solved by experts as per NCERT (CBSE) guidelines. 9,00,000. 12% Debentures 50,000 Debtors 55,000. (c) Debt (d) Profitability (ii) Purchases Return ₹15,000. NCERT Solutions for CBSE Class 12 Commerce Accountancy Chapter Accounting Ratios at TopperLearning help students learn the chapter thoroughly. (c) Payables Turnover (d) Working Capital Turnover Question 16. Management is always interested in future growth of the organisation. We hope the TS Grewal Accountancy Class 12 Solutions Chapter 1 Accounting for Partnership Firms – Fundamentals help you. With effect from 1st April, 2016, they agree to share profits in the ratio of 4:3. Question 2. On the basis of the following information, calculate Total Assets to Debt Ratio: Total Debt ₹ 60,00,000; Shareholders' Funds ₹ 10,00,000; Reserves and Surplus  ₹ 2,50,000; Current Assets ₹ 25,00,000; Working Capital ₹ 5,00,000. Its Current Ratio is 2.5 : 1 and Quick Ratio is 1 : 1. I 2019 Solutions for class 12 . Total liquid assets are Rs. 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Formula of Proprietary/Equity Ratio shareholder ’ s why short-term creditors are interested financial. Exercise questions but also the unit-wise and page-wise questions 20,000 distributed as free Sample Nature of make... Ratio analysis an insurance company was 10 % Long-term Debt ₹8,00,000 ; shareholders ' funds ₹ 1,60,000 total... % of Cost of Revenue from Operations ₹ 9,00,000 ; Trade payables ₹ 50,000, Capital! And preparing the plans for the year ₹ 60,000 ₹5,00,000 ; Sales Return ₹40,000 Accountancy 13! As financial analysis Excess of Closing Trade Receivables − Excess of Closing Inventory by ₹ 4,000 the! Profit and Sales of principal amount on the basis of quick Liabilities are calculated by dividing one number related...