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Accountancy · 2023 · 4 marks
CBSE 2023 · Region 2 · Set 2 · Q33
(1)Calculate Revenue from operations of 'BN Ltd.' from the following information : Current Assets ₹ $\displaystyle 8,00,000$ Quick ratio $\displaystyle 1.5$ : $\displaystyle 1$ Current ratio $\displaystyle 2$ : l Inventory turnover ratio $\displaystyle 6$ times Goods were sold at a profit of $\displaystyle 25$% on cost. (ii) The operating ratio of a company is $\displaystyle 60$%. State whether 'purchase of goods costing ₹ $\displaystyle 20,000$' will increase, decrease or not change the operating ratio. $\displaystyle 3$ + $\displaystyle 1$ =The debt equity ratio of M Ltd. is $\displaystyle 2$:1. State with reasons whether the following transactions will increase, decrease or not change the debt equity ratio : (i) Obtained a loan from ICICI Bank ₹ $\displaystyle 1,00,000$ payable after $\displaystyle 5$ yrs. (ii) Purchased machinery for cash ₹ $\displaystyle 1,50$,000. (iii) Redeemed $\displaystyle 9$% debentures ₹ $\displaystyle 1,00$,000. (iv) Issued equity shares for purchase of machinery of ₹ $\displaystyle 5,00,000$ to the vendors.
(1)
Calculate Revenue from operations of 'BN Ltd.' from the following information : Current Assets ₹ $\displaystyle 8,00,000$ Quick ratio $\displaystyle 1.5$ : $\displaystyle 1$ Current ratio $\displaystyle 2$ : l Inventory turnover ratio $\displaystyle 6$ times Goods were sold at a profit of $\displaystyle 25$% on cost. (ii) The operating ratio of a company is $\displaystyle 60$%. State whether 'purchase of goods costing ₹ $\displaystyle 20,000$' will increase, decrease or not change the operating ratio. $\displaystyle 3$ + $\displaystyle 1$ =
The debt equity ratio of M Ltd. is $\displaystyle 2$:1. State with reasons whether the following transactions will increase, decrease or not change the debt equity ratio : (i) Obtained a loan from ICICI Bank ₹ $\displaystyle 1,00,000$ payable after $\displaystyle 5$ yrs. (ii) Purchased machinery for cash ₹ $\displaystyle 1,50$,000. (iii) Redeemed $\displaystyle 9$% debentures ₹ $\displaystyle 1,00$,000. (iv) Issued equity shares for purchase of machinery of ₹ $\displaystyle 5,00,000$ to the vendors.
Marking-scheme solution
Current Ratio $\displaystyle 2$ : $\displaystyle 1$
Current Ratio = Current Assets/ Current Liabilities
Therefore, $\displaystyle 2$/$\displaystyle 1$= $\displaystyle 8,00,000$/Current Liabilities
₹$\displaystyle 4,00,000$……………………………..½
Current liabilities=
Quick Ratio= $\displaystyle 1.5$:$\displaystyle 1$
Quick Ratio= Quick Assets/ Current Liabilities
1.$\displaystyle 5$/$\displaystyle 1$= Quick Assets/ $\displaystyle 4,00,000$
…………½
So, Quick Assets = ₹$\displaystyle 6,00,000$ ($\displaystyle 1$·$\displaystyle 5$ $\displaystyle 4,00,000$)
Inventory = Current Assets- Quick Assets
₹$\displaystyle 2,00,000$…………….½
= $\displaystyle 8,00,000$ – $\displaystyle 6,00,000$ =
Inventory Turnover Ratio = $\displaystyle 6$ times
Inventory Turnover Ratio = Cost of Revenue from Operations/Average
Inventory
$\displaystyle 6$ = Cost of Revenue from Operations/ $\displaystyle 2,00,000$
₹$\displaystyle 12,00,000$…….½
Cost of Revenue from Operations = $\displaystyle 2,00,000$ $\displaystyle 6$ =
Gross Profit Ratio = $\displaystyle 25$% on cost
₹$\displaystyle 3,00,000$…………………….½
So, GP =$\displaystyle 12,00,000$ $\displaystyle 25$% =
Revenue from Operation = Cost of Revenue from Operations + Gross Profit
= $\displaystyle 12,00,000$ + $\displaystyle 3,00,000$
₹$\displaystyle 15,00,000$………………………………………….½
=
Q. (a ) (ii) The operating ratio………………………………
Ans. Purchase of Goods costing ₹$\displaystyle 20,000$ will not change the operating ratio.
Or
Q. (b) The debt equity……………………………………………
Ans. (i) Increase, Reason= Debt will increase, Equity will not change.
(ii)
No change , Reason= Neither debt nor equity are affected.
(iii)
Decrease, Reason= Debt will decrease while equity will remain same.
(iv)
Decrease, Reason= Equity will increase, debt remain same.
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CBSE Class 12 Accountancy past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.