From the following annual statements of a Company, calculate the following accounting ratios -(a) Gross Profit Ratio: (b) Current Ratio: (c) Liquidity RatioTrading, Profit and Loss A/c for the year ended 31¹ December₹ParticularsParticularsTo Materials ConsumedOpening StockAdd: PurchasesLess: Closing StockTo Carriage InwardsTo Office ExpensesTo Sales ExpensesTo Financial ExpensesTo Loss on Sale of AssetsTo Net Profit9,05054,525(14,000)49,5751,42515,0003,0001,500400LiabilitiesShare Capital: 2,000 Equity Shares of10 each fully paidReservesProfit and Loss A/cBank OverdraftSundry Creditors:-For Expenses- For OthersBy SalesBy Profit on sale of investmentBy Interest on investments15,00085,900Balance Sheet as at 31" December₹20,000 Fixed Assets:-Buildings9,000 - PlantAssets6,000 Current Assets:3,000 - Stock in trade-Debtors2,000 - Bills receivable8,000Bank balances48,00085,00060030085,900₹15,0008,00014,0007,0001,0003,00048,000

Accounting ratio is the comparison of two or more financial data which are used for analyzing the…

From the following annual statements of a Company, calculate the following accounting ratios - (a) Gross Profit Ratio: (b) Current Ratio: (c) Liquidity Ratio Trading, Profit and Loss A/c for the year ended 31" December ₹ Particulars Particulars To Materials Consumed Opening Stock Add: Purchases Less: Closing Stock To Carriage Inwards To Office Expenses To Sales Expenses To Financial Expenses To Loss on Sale of Assets To Net Profit Reserves Profit and Loss A/c Bank Overdraft Sundry Creditors: - For Expenses - For Others 9,050 54,525 (14,000) Liabilities Share Capital: 2,000 Equity Shares of *10 each fully paid 49,575 1,425 15,000 3,000 1,500 400 By Sales By Profit on sale of investment By Interest on investments 15,000 85,900 Balance Sheet as at 31" December ₹ 20,000 Fixed Assets: -Buildings 9,000 - Plant Assets 6,000 Current Assets: 3,000 - Stock in trade -Debtors 2,000 - Bills receivable 8,000 Bank balances 48,000 85,000 600 300 85,900 ₹ 15,000 8,000 14,000 7,000 1,000 3,000 48,000

From the following annual statements of a Company, calculate the following accounting ratios - (a) Gross Profit Ratio: (b) Current Ratio: (c) Liquidity Ratio Trading, Profit and Loss A/c for the year ended 31" December ₹ Particulars Particulars To Materials Consumed Opening Stock Add: Purchases Less: Closing Stock To Carriage Inwards To Office Expenses To Sales Expenses To Financial Expenses To Loss on Sale of Assets To Net Profit Reserves Profit and Loss A/c Bank Overdraft Sundry Creditors: - For Expenses - For Others 9,050 54,525 (14,000) Liabilities Share Capital: 2,000 Equity Shares of *10 each fully paid 49,575 1,425 15,000 3,000 1,500 400 By Sales By Profit on sale of investment By Interest on investments 15,000 85,900 Balance Sheet as at 31" December ₹ 20,000 Fixed Assets: -Buildings 9,000 - Plant Assets 6,000 Current Assets: 3,000 - Stock in trade -Debtors 2,000 - Bills receivable 8,000 Bank balances 48,000 85,000 600 300 85,900 ₹ 15,000 8,000 14,000 7,000 1,000 3,000 48,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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