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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Only d) and e)
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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