✓ Board-verified
Accountancy · 2023 · 4 marks
CBSE 2023 · Region 1 · Set 2 · Q33
Calculate Gross Profit Ratio from the following information: Inventory Turnover Ratio: 6 times Average Inventory: ₹ 4,00,000 Goods are sold at a…
Calculate Gross Profit Ratio from the following information : Inventory Turnover Ratio : $\displaystyle 6$ times Average Inventory : ₹ $\displaystyle 4,00,000$ Goods are sold at a profit of $\displaystyle 25$% on cost
The Current Ratio of a company is $\displaystyle 2$ : 1. State giving reasons, which of the following transactions would improve, reduce or not change the ratio : (a) Purchased goods on credit ₹ $\displaystyle 40,000$ (b) Sale of furniture of ₹ $\displaystyle 8,000$ at a loss of ₹ $\displaystyle 2,000$ (c) Cash received from trade receivables ₹ $\displaystyle 15,000$ (d) Issued equity shares ₹ $\displaystyle 6,00,000$
Marking-scheme solution
(i)
Gross Profit ratio = Gross Profit x $\displaystyle 100$
Revenue from Operations
Inventory turnover ratio = Cost of Revenue from Operations
Average Inventory
Cost of Revenue from Operations = $\displaystyle 6$ x $\displaystyle 4,00,000$
= ₹$\displaystyle 24,00,000$
Gross Profit : $\displaystyle 25$% of Cost = $\displaystyle 25$/$\displaystyle 100$ x $\displaystyle 24,00,000$
= ₹$\displaystyle 6,00,000$
Gross Profit Ratio = $\displaystyle 6,00,000$ x $\displaystyle 100$
$\displaystyle 30,00,000$
Q. (ii) The Current Ratio…………..
Ans.
(a)
Current Ratio would reduce.
Reason: Current assets as well as Current Liabilities would increase by the same
amount.
Current Ratio would improve.
Reason: Current assets would increase, while current liabilities remain the same.
(c)
Current Ratio would not change.
Reason: Both Current assets and Current liabilities remain the same.
(d)
Current Ratio would improve.
Reason: Current assets would increase whereas there would be no change in Current
Liabilities.
More from Accounting Ratios
- The current ratio of Jack Ltd. is 3·2: 1 and the quick ratio is 1·5: 1. The excess of current assets over quick assets was represented by inventories…2025
- The current assets of X Ltd. are ₹ 2,00,000 and its current liabilities are ₹ 1,50,000. If, its working capital turnover ratio is 6 times, its…2023
- Prepare a 'Common S ize Balance Sheet' from the following B alance Sheet of Shree Ltd. as at 31st March, 2022: Balance Sheet of Shree Ltd. as at 31st…2022
- Identify and state the significance of any two ratios that are calculated to measure the efficiency of operations of business based on effective…2023
- From the following information, calculate 'Interest Coverage Ratio': Shareholders' funds 30,00,000 8% Long-term debt 10,00,000 Net profit after tax ₹…2026
- The quick ratio of Theta Ltd. is 0.8:1. Which of the following transactions will result in decrease in this ratio?2026
- Which of the following is not a Solvency Ratio?2023
- Calculate Gross Profit Ratio from the following information: Average Inventory ₹ 1,60,000; Inventory Turnover Ratio 8 times, Average Trade…2023
CBSE Class 12 Accountancy past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.