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From the following annual statements of a Company, calculate the following accounting ratios - (a) Gross Profit Ratio: (b) Current Ratio: (c) Liquidity Ratio; (d) Debt Equity Ratio and (e) Return on Investment Ratio.

From the following annual statements of a Company, calculate the following accounting ratios - (a) Gross Profit Ratio: (b) Current Ratio: (c) Liquidity Ratio; (d) Debt Equity Ratio and (e) Return on Investment Ratio.

FINANCIAL ACCOUNTING
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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Only d) and e) 

From the following annual statements of a Company, calculate the following accounting ratios - (a) Gross Profit Ratio: (b) Current Ratio: (c) Liquidity Ratio; (d) Debt Equity Ratio and (e) Return on Investment 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 9,050 54,525 (14,000) 49,575 1,425 15,000 3,000 1,500 400 Liabilities Share Capital: 2,000 Equity Shares of 10 each fully paid Reserves Profit and Loss A/c Bank Overdraft Sundry Creditors: -For Expenses -For Others By Sales By Profit on sale of investment By Interest on investments 15,000 85,900 Balance Sheet as at 31st December ₹ 20,000 Fixed Assets: - Buildings Assets 9,000 - Plant 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
Transcribed Image Text:From the following annual statements of a Company, calculate the following accounting ratios - (a) Gross Profit Ratio: (b) Current Ratio: (c) Liquidity Ratio; (d) Debt Equity Ratio and (e) Return on Investment 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 9,050 54,525 (14,000) 49,575 1,425 15,000 3,000 1,500 400 Liabilities Share Capital: 2,000 Equity Shares of 10 each fully paid Reserves Profit and Loss A/c Bank Overdraft Sundry Creditors: -For Expenses -For Others By Sales By Profit on sale of investment By Interest on investments 15,000 85,900 Balance Sheet as at 31st December ₹ 20,000 Fixed Assets: - Buildings Assets 9,000 - Plant 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
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