(3

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Written by ideal the Sheet are decided, business the of and the to bad Iiabilities
twodifferent 18.00.000.ACCcoUNTANCY-12
contribution understanding basis way
important, or will its Balanceratios to of basis
of or
LIFO or comparison a good
Q.1.
"Accounting
follow
position, Linewhich
from of is theattention the results follow
line is F
action accountsCurrent
’ Straight data ratio analysetrend years.in on
straight of
Tax
firm8 more is area statements
When may indicator
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IN
financial different the for of weak the and 100%%SUCCESs
different valuation all course of
be : how Lower useful forecasting.number
can : enterprise
the
Profit
may e.g. etc., Policies affect Manipulation 4,30,000
future identifying Management financial on definite
if his
information
of
factors give
depreciation and arecreditors, a depreciation
adversely Net
QUESTIONS
EXPECTED
MOST comparable regarding Inventory lenders. for
the
ACcounting
will outsides ratios andthe calculated a wereearnedEVERGREEN
because that be
qualitative firms long-term investors, be
planning
should
in dressing.
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Accounting assists
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for of mindcharge company
not different by
methods nature may
methods contribution are Different differences
window Current
also Sometimes bankers,
ratios. Whatratios
business analysis in may ratio
by
protection. in kept the
are by
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accounting Long-term
Debts Statements of i.e., historical enterprise paricular lts31-U3-2019
and policies Ratio be
follow
help
Suppliers,in may Such by 30,00,000.
basis
factors% analysis, is
of Analysis.
protection : helpful ratios, follows: should affected
asset much are the : Analysis. historical.
Firms onebasis.
degree future Areas performance is of
QUEST0ONS the differentdifferent? analysis with of action. analysis on
qualitative an how
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enterprise.are trend as it be presence ended
quantitive Weak example,
compared,value may Return
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accounting
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on of
indicates of the ratio guide remedial
customer life of compared. or degreebe and
of Analysis
Ratio Ratios
year
adopt
theadoption Ratio will of basis the overall of calculated diminishing the company Calculate
ignore DebtEquity of of the : a
advantages Forecasting
Profit limitations For the
Type-I a estinmating Debt-Equity
Ratio thehigher usesAnalysis of as theIdentifying take Analysis:if being
So,
policies. Dressing:
etc. firms
onlya character,
honesty if position used Ratio financialfacts. During
statements.
ratios Debt
Equity
Ratio= indicates and of on the Comparable 30%.
to theresults Statement times, and are are a
is different Debt-Equity :1, and though of of
ANSWER analysis granted Hence, co. theadvantages
in ratios accounting
thelimitations
weaknesses
on vitalmanagement.
assets
30.000.
was
and 2 for enterprises
misleading
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many which conceal rate
method)
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ShoRT The The o ro The
Ans. 1. 2. 3. 1. 2
Q.2. Ans. Q.3. Ans. 3.
04. Ans. r
288
 Sales Gross
of 289
Liabilities) 5,20,000, 3,00,000
=
=4
Times amounts
the
Current Sales 1,00,000
79,60,000
R2,40,000
98,500, Receivables,
- Ratio. =15,40,000
-
Assets 2,40,000
is Stock Debt
=5.13 :Ratio Receivablae
Current Stock =87,375 Operations
Receivable
2,40,000 Trade
Closing
Closing to
Assets
15,40,000 - Turnover
1,90,000
3,00,000 4,00,000 Receivables
Trade
Average
36,00,000
(i.e,
9,60,000 10,000
1,90,000
50,000
100 ClosingTrade
Capital 76,250,
-
Purchases 76,250+98,500 Total + - from Bills=?
x 98,500 Receivables
5,00,000 50,000
and from
Tax 1,50,000
timescalculate
=3.43 Debt
Long-Term Revenue
Capital
Employed
and
Working =50% Assets +
Debtors Opening
Interest
1,00,000 ?
is -
+ 3,22,250 12,00,000 + -
+? deducted
100 Stock Average StockStock =5,00,000
=4,00,000 =2,40,000
Current
Assets
=190,000
Non-current
Investments
=1,50,000Current
Liabilities
=1,00,000 =1540,000
12,00,000 =71,90,000
COGS
LTD., Total Trade Credit =Gross taken.
about
+ ?
before Assets
+ R
18,00,000 Opening
36,00.000
-35,00,000 Return
is3,22,250.
Opening
+ =?3,00,000
76,250
OS
+
CS
2

3,00,000
87,375
Shiva
Capital
= = =
calculate are
not
Information
is
ACCOUNTA
Receivables
10%0
Profit Fixed Capital
Assets Surpluses Ratio Assets Debt Debts
if = = =
of
Particulars Ratio
R Stock
Turnover
Ratio Stock information information,
- Ratio COGS
Turnover Average
Stock Ratio
Share Fixed
Share Debt
Total Operations Doubtful
Return
on
Investment Returnon
Investment20,000,
R
Purchases and Turnover
Receivables
Trade
|Average
Capital
Employed Turnover Debts
to of Bills
Equity
Preference Reserves Assets absence
following followingfrom Doubtful andfor VERGREEN
IN
Receivables Provision
Debtors SUCCES
Calculate Stock
9%
Total Revenue
Bills
Receivable
Gross
Debtors
for In
the
the the Provision
From From Credit 2.
An8. Ans,
Trade 1.
06. Ans. 07. Ans. Q0.
ARks)
Sferent stomer Niten
ion
by ideal the Sheet are
Os ided, iness the ofs two rent and the
8
 ofeach meet
sufficient
Shares
ofi0 30,000 ACCOUNTANGT
Rent to purchased
Ase and margin
would Current Prepaid
=2,00,000 is 16,80,000
Tax
change. available Times
=7.64
transactions Equity Advance and higherit
another - Afterwards, 5%. IN
1=1.33:Tax Interest Ratio =
SUCCESS
not 10,000
Advance indicates
profit 16,00,000)
of do 40,000,
issue by goods. =?1,60,000 Loss 2,20,000
716,80,000
following
the replaced Assets 71,50,000 before
72,00,000 the =3,20,000
Loss 100%
received.
by
paid Reason -30,000- it
140,000.
Gross
-Inventories whether of Gross figures. EVERGREEN
Current?Inventories
Current as of
is Profit lenders purchase 5%
(Debtors) Liabilities? Creditors) :Ratio2,20,000; +
werewas also -40,000 Net ascertain Stock) (i.e.,missing
Operations
of
which vendor Liabilities
Current =2:1
Operations
and Borrowings
Long-term the the Turnover 80,000
which
Asset Liabilities 2,80,000,Assets
Quick -
Assets between Tax
after in in the
follows:
computed
as for Inventory
reason,40,000 The Bank).
or(Cash objective. and to
=2,80,000 better
Current (Increase
(Increase1,60,000
3,20,000 Inventory
Average from Fill
Current Current Interest is Ratio Inventory +
745,000. relationship ratio from =16,00,000
CurrentAssets RevenueRatio.36,00,000
Ratio. its be andCurrent
20,000
20,000 Average 79,00,000
6,00,000
with of One
= before thisto Revenue Proprietary
Debtors
:ratio Quick ASsets Explain 3,00,000 Liabilities
Current 1.2 40%
State, Furniture Quick Ratio computing
considered
the
Assets calculate
Current
=
establishes on
Interest
Profit 16,00,000;
2:1. the Ratio
Quick is + +
Credit:
Calculate 71,40,000
= of
include
change Calculate ?
Ratio It Net Assets 73,00,000 Cost Operations
1,50,000,
Q.10. information and
purchased
Current Debts. of is
isY
Ratio Coverage on Ratio
Ltd. Receivables Ratio objective
ratio =
Operations
Ratio
not Change
No Change 10,000. Long-term
Coverage
Interest
Ratio credit.
CurrentGoods
on = Borrowings
Long-term
(iii) high from Debt-equity
of
or Company Effect No Liabilities Coverage
Interest The on of Liabilities
Current following Turnover
Ratio
Debt-Equity
Liabilities
Current Ratio
Proprietary
A had Purchase :Notes
Working
Revenue
decrease
Trade at
par. Rent
on :Objective interest. 20,000 Current
company
cost.
interest
Assets Current
Ratio from 6%
Debentures
Current S.No.
(0 Prepaid
() Current Payable
is Interest Inventory
theRevenue Calculate
(0) (1) :Note What worth of
(ii) pay After From
Cost
Q.9. Ans. A
Q.11. Ans. Q.12.
Ans. Ans. Q.13. Ans. 0.14.
290
8
 a
from
MARks)
(4 of 291
at 50%
sold times
=4
Revenue areRatio.
are Liabilities =6,00,000
Goods Turnover 6,00,000
Cash
24,00,000
60,000). Current Liabilities
(including Capital 12,00,000
24,00,000 Operations
Revenue:Calculate
Purchases
4,00,000.
Working Current from
5,00,000
Capital
Working
30,00,000 of
50% Ltd.
Credit
=750,000 is the
=
4,00,000 =12,00,000-
-Assets
-75,00,000 =30,00,000 Operations.
Operations
Calculate
Profit Operations =Current Raja
Profit 120
Shareholder's
Punds
Shareholders'
Funds Shareholder's
Funds Shareholder's
Funds (including Gross of
books
Debts x
'Total
Assets 36,00,000 10040
-Gross Operations
=
12,00,000. 12020
from Its from Capital Ratio the
term Total
A99ets 30,00,000 from
Total
Assets
3,00,000
=30,00,000 Revenue 20%. from
36,00,000
-Long
1.2
Revenue
Revenue is are from
Revenue Turnover
obtained
and
sales
on QUESTIONS
cost Working
Purchases
Net Assets Revenye Ratio,
of on 4,00,0b0, Rati
yer
Capitalinformati
Total cost =
operations
5 5,00,000-ProfitCurrent
operations
=4,00,000
1,00,000 Turnov
Calculate1 =cost
On
60,000;
Total
=1,00,000
5,00,000
on Gross Cost.20,
Type-II Working
Ralio
Debl-iquity
()
Funds
Shareholder's 1,00,000); from and is is
Profit
Profit Rece
followi
Ratio
Iroprietary
(ii) R cost. from1 of of
Inventory or rateAssets
20%
Assets
Total on Revenue
25% Revenue ANSWER
company,GrossGross
25% is
?Operations Current
theTra
Profit Profit If
If
40% 1.2()Ans. 40%
(ii) Closing
of of Hence,
1.2 profitofCost Gross Cost Gross From
ShoRTaIn the ()
1 5
o.15. Ans. Q1. Ans. 0.2.