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Accountancy · 2023 · 4 marks
CBSE 2023 · Region 1 · Set 2 · Q33
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 costORThe 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 ₹ $\displaystyle 6,00,000$
OR
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 $\displaystyle 100$ ½
Revenue from Operations
Inventory turnover ratio = Cost of Revenue from Operations
Average Inventory
Cost of Revenue from Operations = $\displaystyle 6$ x $\displaystyle 4,00,000$
`$\displaystyle 24,00,000$
= $\displaystyle 1$
Gross Profit : $\displaystyle 25$% of Cost = $\displaystyle 25$/$\displaystyle 100$ x $\displaystyle 24,00,000$
= `$\displaystyle 6,00,000$ $\displaystyle 1$
Gross Profit Ratio = $\displaystyle 6,00,000$ x $\displaystyle 100$ $\displaystyle 1$
$\displaystyle 30,00,000$
= $\displaystyle 20$% ½
OR
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.
(b)
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.
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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.