Past Year Papers Chapter wise Solutions
Accounting Ratios
2. A company had Current Assets Rs. 3,00,000 and Current Liabilities Rs. 1,40,000. Afterwards, it purchased goods worth Rs. 20,000 on credit. Calculate the Current Ratio after the purchase of goods. Marks-2/4, CBSE:2018-19/Main/02/Q-21* Answer Next Back
Read More5. X Ltd. has a current ratio 3.5:1 and quick ratio of 2:1. If excess of current assets over quick assets represented by Inventory is 24,000, calculate current assets and current liabilities. Marks-2/4, CBSE:2016-17/Sample/Q-21 Answer Next Back
Read More6. Current Liabilities Rs. 1,50,000, Current Assets Rs. 2,80,000, Inventories Rs. 40,000, Advance Tax Rs. 30,000, and Prepaid Rent Rs. 10,000. Calculate Quick Ratio. Marks-3, CBSE:2019-20/Main/02/Q-30(i)* Answer Next Back
Read More7. From the following data, calculate Current ratio and Liquid Ratio Liquid Assets ₹ 75,000 Inventories (Includes Loose Tools of ₹20,000) ₹ 35,000 Prepaid expenses ₹10,000 Working Capital ₹ 60,000 Marks-4, CBSE:2018-19/Sample/Q-21* Answer Next Back
Read More8. Quick ratio of a company is 1 : 1. State, with reason, whether the following transactions will increase, decrease or not change the ratio: (i) Paid insurance premium in advance Rs. 10,000. (ii) Purchased goods on credit Rs. 8,000. (iii) Issued fully paid equity shares of Rs. 1,00,000. (iv)...
Read More9. The Quick Ratio of a company is 1.5 : 1. State, giving reasons, which of the following transactions will improve, reduce or not change the quick ratio: (i) Purchase of goods for cash (ii) Bills payable paid at maturity (iii) Sale of goods costing Rs. 18,000 for Rs. 16,000...
Read More10. The Quick ratio of a company is 0.8 : 1. State with reason whether the following transactions will increase, decrease or not change the quick ratio: (1) Purchase of loose tools Rs. 2,000. (2) Insurance premium paid in advance Rs. 500. (3) Sale of goods on credit Rs. 3,000....
Read More12. The Debt Equity ratio of a company is 1 : 2. State whether ‘Issue of bonus shares’ will increase, decrease or not change the Debt Equity Ratio. Marks-2/4, CBSE:2018-19/Main/01/Q-21* Answer Next Back
Read More13. Calculate the Current Ratio and Debt-Equity Ratio from the following information: Rs. Non-Current Assets 16,00,000 Current Assets 4,00,000 Working Capital 2,00,000 Non-Current Liabilities 12,00,000 Marks-3, CBSE:2019-20/Main/03/Q-30* Answer Next Back
Read More14. Assuming that the Debt to Equity ratio of a company is 0·50, state whether this ratio would increase, decrease or remain unchanged in the following cases: (i) Purchase of fixed assets on a credit of 3 months (ii) Issue of new shares for cash (iii) Purchased machinery and paid...
Read More15. Calculate ‘Total Assets to Debt ratio’ from the following information: Rs. Equity Share Capital 4,00,000 Long Term Borrowings 1,80,000 Surplus i.e. Balance in statement of Profit and Loss 1,00,000 General Reserve 70,000 Current Liabilities 30,000 Long Term Provisions 1,20,000 Marks-2/4, CBSE:2018-19/Main/01/Q-21* Answer Next Back
Read More16. Calculate the ‘Total Assets to Debt Ratio’ from the following information: Rs. Current Assets 11,00,000 Working Capital 6,50,000 Shareholder’s Fund 7,50,000 Total Debt 19,50,000 Reserves and Surplus 2,50,000 Marks-3, CBSE:2019-20/Main/01/Q-30* Answer Next Back
Read More17. From the following information of Shiva Ltd., calculate total assets to debt ratio: Equity Share Capital Rs. 5,00,000 9% Preference Share Capital Rs. 4,00,000 Fixed Assets Rs. 12,00,000 Non-Current Investments Rs. 1,50,000 Reserves and Surplus Rs. 2,40,000 Current Assets Rs. 1,90,000 Current Liabilities Rs. 1,00,000 Marks-4, CBSE:2018-19/Main/04/Q-22* Answer Next...
Read More18. From the following balances obtained from the books of Heera Ltd. calculate proprietary ratio: Rs. Plant and Machinery 10,00,000 Land and Building 6,00,000 Motor Car 8,00,000 Furniture 1,50,000 Stock 4,50,000 Debtors 90,000 Cash at Bank 3,40,000 Non-Current Liabilities 10,00,000 Current Liabilities 6,20,000 Marks-4, CBSE:2018-19/Main/05/Q-22* Answer Next Back
Read More19. The net profit after interest and tax of a company was Rs. 1,20,000; Rate of income tax is 40%. The company has 10% debentures of Rs. 1,00,000. Calculate interest coverage ratio. Marks-2/4, CBSE:2016-17/Comp-AI/Q-21 Answer Next Back
Read More20. From the following information calculate Interest Coverage Ratio : Net profit after interest and tax Rs. 1,20,000; Rate of income tax 40%; 15% debentures Rs. 1,00,000; 12% Mortgage loan Rs. 1,00,000. Marks-2/4, CBSE:2018-19/Main/02/Q-21* Answer Next Back
Read More21. From the following information, calculate ‘Interest coverage Ratio’: Profit after interest and tax Rs. 6,00,000 10% Debentures Rs. 8,00,000 Rate of Income Tax 40% Marks-3, CBSE:2019-20/Main/04/Q-30* Answer Next Back
Read More22. From the following details calculate Interest Coverage Ratio: Net profit after tax – ₹ 7,00,000 6% debentures of ₹ 20,00,000 Tax Rate 30% Marks 3, CBSE:2019-20/Sample/Q-30* Answer Next Back
Read More23. For the year ended March 31, 2017, Net Profit after tax of K X Limited was Rs. 6,00,000. The company has Rs. 40,00,000 12% Debentures of Rs. 100 each. Calculate Interest Coverage Ratio assuming 40% tax rate. State its significance also. Will the Interest Coverage Ratio change if during...
Read More25. From the following information related to a company calculate inventory turnover ratio: Opening inventory Rs. 20,000; Closing inventory Rs. 22,000; Purchases Rs. 80,000; Wages Rs. 9,000; Carriage outwards Rs. 2,000; Returns outwards Rs. 1,000; Revenue from operations Rs. 80,000; Carriage inwards Rs. 4,000; Rent Rs. 5,000. Marks-2/4, CBSE:2016-17/Comp-AI/Q-21 Answer...
Read More26. From the following information, calculate Inventory Turnover Ratio. Revenue from Operations: 4,00,000, Average Inventory: 55,000, The rate of Gross Loss on Revenue from Operations was 10%. Marks-2/4, CBSE:2016-17/Sample/Q-21 Answer Next Back
Read More27. Calculate Revenue from operations of BN Ltd. From the following information: Current assets Rs. 8,00,000 Quick ratio is 1.5 : 1 Current ratio is 2 : 1 Inventory turnover ratio is 6 times. Goods were sold at a profit of 25% on cost. Marks-2/4, CBSE:2018-19/Main/01/Q-21* Answer Next Back
Read More28. Average Inventory Rs. 60,000, Revenue from Operations Rs. 6,00,000, the rate of Gross Loss on Sales is 10%. Calculate the Inventory Turnover Ratio. Marks-3, CBSE:2019-20/Main/02/Q-30(i)* Answer Next Back
Read More29. A company had a liquid ratio of 1.5:1 and a current ratio of 2:1. Its inventory turnover ratio was 6 times. It had total current assets of Rs. 2,00,000. Find out revenue from operations if the goods are sold at 25% profit on cost. Marks-3, CBSE:2019-20/Main/05/Q-30* Answer Next Back
Read More30. From the following information obtained from the books of Kundan Ltd., calculate the inventory turnover ratio for the years 2015 − 16 and 2016 – 17: 2015 – 16 Rs. 2016 – 17 Rs. Inventory on 31st March 7,00,000 17,00,000 Revenue from operations 50,00,000 75,00,000 (Gross profit is 25%...
Read More32. Rate of Gross profit on Revenue from operations of a company is 25%. Its Gross profit is Rs. 5,00,000. Its Shareholders’ Funds are Rs. 25,00,000; Non-current Liabilities are Rs. 8,00,000 and Non-current Assets are Rs. 23,00,000. Calculate its Working Capital Turnover Ratio. Marks-2/4, CBSE:2018-19/Comp/Q-20* Answer Next Back
Read More33. A company earns Gross profit of 25% on cost. For the year ended 31st March, 2017 its Gross Profit was Rs. 5,00,000; Equity Share Capital of the company was Rs. 10,00,000; Reserves and Surplus Rs. 2,00,000; Long Term Loan Rs. 3,00,000 and Non Current Assets were...
Read More34. Rate of Gross profit on cost of a company is 25%. Its Gross profit is Rs. 5,00,000. Its shareholders’ Funds are Rs. 12,00,000; Current liabilities are Rs. 3,00,000 and Current Assets are Rs. 10,00,000. Calculate its Working Capital Turnover ratio. Marks-2/4, CBSE:2016-17/Comp-DL/-21 Answer Next Back
Read More37. From the following information, determine the opening inventory and the closing inventory: Inventory Turnover Ratio = 5 times Revenue from Operations = Rs. 8,00,000 Gross Profit Ratio = 25% Closing inventory was Rs. 20,000 more than the opening inventory. Marks-3, CBSE:2019-20/Main/03/Q-30* Answer Next Back
Read More38. The Revenue from operations of a firm is Rs. 6,00,000. Its inventory turnover ratio is 3 times. If gross profit ratio is 25%, calculate its opening inventory and closing inventory. The opening inventory is 25% of closing inventory. Marks-3, CBSE:2019-20/Main/04/Q-30* Answer Next Back
Read More39. Calculate the amount of opening trade receivables and closing trade receivables from the following information: Trade receivables turnover ratio 8 times Cost of revenue from operations Rs. 4,80,000 The amount of credit revenue from operations is Rs. 2,00,000 more than cash revenue from operations. Gross profit ratio is 20%....
Read More40. Calculate opening and closing trade receivables from the following information: Trade Receivable turnover ratio 4 times; Cost of Revenue from Operations Rs. 3,20,000; Gross profit ratio 20%; Closing trade receivables were Rs. 15,000 more than opening trade receivables; cash revenue from operations being 33⅓ % of credit revenue from...
Read More41. Calculate amount of Opening Trade Receivables and Closing Trade Receivables from the following figures: Trade Receivable Turnover ratio 5 times Cost of Revenue from Operations ₹ 8,00,000 Gross Profit ratio 20% Closing Trade Receivables were ₹ 40,000 more than in the beginning Cash sales being ¼ times of Credit...
Read More43. The Operating ratio of a company is 60%. State whether ‘Purchase of goods costing Rs. 20,000’ will increase, decrease or not change the operating ratio. Marks-2/4, CBSE:2018-19/Main/01/Q-21* Answer Next Back
Read More44. From the given information, calculate the following ratios: (i) Operating Ratio (ii) Inventory Turnover Ratio Information: Cash Revenue from Operations Rs. 10,00,000 Credit Revenue from Operations 120% of Cash Revenue from Operations Operating Expenses 10% of Total Revenue from Operations Rate of Gross Profit 40% Opening Inventory Rs. 1,50,000...
Read More45. The operating ratio of a company is 80%. State whether the following transactions will increase, decrease or not change the ratio: (i) Purchased goods on credit Rs. 20,000 (ii) Paid wages Rs. 5,000 (iii) Redeemed Rs. 8,000, 9% debentures (iv) Sold goods Rs. 50,000 for cash Marks-4, CBSE:2018-19/Main/04/Q-22* Answer...
Read More46. Net profit after interest and tax of M Ltd. was Rs. 1,00,000. Its Current Assets were Rs. 4,00,000 and Current Liabilities were Rs. 2,00,000. Tax rate was 50%. Its Total Assets were Rs. 10,00,000 and 10% Long term debt was Rs. 4,00,000. Calculate Return on Investment. Marks-2/4, CBSE:2018-19/Comp/Q-20* Answer...
Read More47. Y Ltd’s profits after interest and tax was Rs. 1,00,000. Its Current Assets were Rs. 4,00,000; Current Liabilities Rs. 2,00,000; Fixed Assets Rs. 6,00,000 and 10% Long term debt Rs. 4,00,000. The rate of tax was 20%. Calculate ‘Return on Investment’ of Y Ltd....
Read More48. Net profit after interest and tax Rs. 1,00,000; Current assets Rs. 4,00,000; Current liabilities Rs. 2,00,000; Tax rate 20%; Fixed assets Rs. 6,00,000; 10% Long term debt Rs. 4,00,000. Calculate Return on Investment. Marks-2/4, CBSE:2016-17/Comp-DL/-21 Answer Next Back
Read More49. From the following information obtained from the books of P. Ltd., calculate, (i) Return on Investment, and (ii) Debt-Equity Ratio: Information: Net Profit after interest and tax Rs. 6,00,000; 6% Debentures Rs. 10,00,000; Capital employed Rs. 20,00,000, and Tax rate 40%. Marks-3, CBSE:2019-20/Main/02/Q-30* Answer Next Back
Read More(i) X Ltd. has a current ratio of 3 : 1 and quick ratio of 2 : 1. The excess of current assets over quick assets are ₹24,000. Calculate current assets and current liabilities. (ii) From the following information, compute ‘Total Assets to Debt Ratio’: Marks-3, CBSE:2019-20/Compartment/Q-30* Answer : Next...
Read MoreCalculate proprietary ratio, if Total assets to Debt ratio is 2:1. Debt is ₹5,00,000. Equity shares capital is 0.5 times of debt. Preference Shares capital is 25% of equity share capital. Net profit before tax is ₹10,00,000 and rate of tax is 40%. Marks-3, CBSE:2020-21/Sample/Q-30* Answer : Next Back
Read MoreFrom the following information, calculate ‘Interest Coverage Ratio. Profit after interest and tax ₹7,50,000 Rate of income tax 25% 9 % Debentures ₹8,00,000 Marks-3, CBSE:2020-21/Sample/Q-30* Answer : Next Back
Read More(i) Calculate Revenue from operations of BN Ltd.’ from the following information: Current Assets ₹8,00,000 Quick ratio 1.5 : 1 Current ratio 2 : 1 Inventory turnover ratio 6 times Goods were sold at a profit of 25% on cost. (ii) The operating ratio of a...
Read MoreThe debt equity ratio of M Ltd. is 2:1. State with reasons whether the following transactions will increase, decrease or not change the debt equity ratio: (i) Obtained a loan from 1CICI Bank ₹1,00,000 payable after 5 yrs. (ii) Purchased machinery for cash ₹1,50,000. (ii) Redeemed 9% debentures ₹1,00,000, (iv)...
Read MoreCalculate Gross Profit Ratio from the following information: Average Inventory ₹1,60,000; Inventory Turnover Ratio 8 times, Average Trade Receivables ₹2,00,000; Trade Receivables Turnover Ratio 6 times and Cash Sales 25% of Total Sales. Marks-4, CBSE:2022-23/Zone-3/Set-1/Q-33* Answer : Next Back
Read MoreFrom the following information, calculate Working Capital Turnover Ratio: Capital Employed ₹1,00,000 Non-Current Assets ₹80,000 Cost of Revenue from Operations ₹3,20,000 Gross Profit Ratio 20% Marks-4, CBSE:2022-23/Zone-3/Set-1/Q-33* Answer : Next Back
Read More(a) Y Ltd. has a Current Ratio of 3.5 : 1 and Quick Ratio of 2 : 1. If excess of current assets over quick assets represented by inventory is ₹48,000, calculate current assets and current liabilities. (b) Calculate Debt to Equity Ratio: Shareholder Funds ₹2,00,000 Reserves and...
Read MoreThe Current Ratio of a company is 2 : 1. State giving reasons which of the following transactions would improve, reduce or not change the ratio: (a) Purchase of goods for cash ₹60,000 (b) Purchase of fixed assets for cash ₹2,00,000 (c) Sale of goods costing ₹20,000 for ₹23,000 on...
Read MoreFrom the following information, calculate the value of opening and closing inventory: Inventory Turnover Ratio = 4 times Gross Profit = 20% on Revenue from operations Revenue from operations = ₹10,00,000 Opening inventory is 25% of the inventory at the end. Marks-4, CBSE:2022-23/Zone-5/Set-1/Q-33* Answer : Next Back
Read MoreDebt-Equity Ratio of Z Ltd. is 2: 1. State with reason whether the following transactions will improve, decline or will not change the debt-equity ratio: (i) Conversion of 3,00,000, 9% debentures into equity shares. (ii) Cash received from debtors ₹1,00,000 (iii) Redemption of 10,00,000, 11% debentures. (iv) Purchase of goods...
Read Morea) A company had a liquid ratio of 1.5 and current ratio of 2 and inventory turnover ratio 6 times. It had total current assets of ₹8,00,000. Find out annual sales if goods are sold at 25% profit on cost. b) Calculate debt to capital employed ratio from the following...
Read MoreCalculate Gross Profit Ratio from the following information: Inventory Turnover Ratio: 6 times Average Inventory: ₹4,00,000 Goods are sold at a profit of 25% on cost Marks-4, CBSE:2022-23/Zone-1/Set-1/Q-33* Answer : Next Back
Read MoreThe Current Ratio of a company is 2 : 1. State giving reasons, which of the following transactions would improve, reduce or not change the ratio: (a) Purchased goods on credit ₹40,000 (b) Sale of furniture of ₹8,000 at a loss of ₹2,000 (c) Cash received from trade receivables ₹15,000...
Read MoreDetermine Return on Investment and Net Assets Turnover ratio from the following information: – Profits after Tax were ₹6,00,000; Tax rate was 40%; 15% Debentures were of ₹20,00,000; 10% Bank Loan was ₹20,00,000; 12% Preference Share Capital ₹30,00,000; Equity Share Capital ₹40,00,000; Reserves and Surplus were ₹10,00,000; Sales ₹3,75,00,000 and...
Read MoreDebt to Capital Employed ratio is 0.3:1. State whether the following transactions, will improve, decline or will have no change on the Debt to Capital Employed Ratio. Also give reasons for the same. Sale of Equipments costing ₹10,00,000 for ₹9,00,000. Purchased Goods on Credit for ₹1,00,000 for a credit of...
Read More