NCERT Solutions for Class 12 Accountancy II Chapter 5 Accounting Ratios

Ans : CL= Rs 5,60,000
CR=5:2, QR=2:1
(i) \(\mathrm{CR}=\frac{\text { Current Assets }}{\text { Current Liabilities }} \text { or } \frac{5}{2}=\frac{\mathrm{CA}}{5,60,000}\)
Or \(\begin{aligned} 2 \times \mathrm{CA} &=5 \times 5,60,000 \text { or } \mathrm{CA}=\frac{28,00,000}{2} \\ \mathrm{CA} &=\mathfrak{Z} 14,00,000 \end{aligned}\)
(ii) \(\begin{aligned} \text { Quick Ratios } &=\frac{\text { Quick Assets }}{\text { Current Liabilities }} \\ \frac{2}{1} &=\frac{Q A}{5,60,000} \end{aligned}\)
Or \(\begin{array}{l}{Q A=2 \times 5,60,000} \\ {Q A=811,20,000}\end{array}\)
(iii) \(\begin{aligned} \text { Stock } &=\text { Current Assets - Quick Assets } \\ &=14,00,000-11,20,000=2,80,000 \end{aligned}\) 

Ans : Current ratio = 4.5:1 
Liquid ratio = 3:1 
Inventory 36.000
Let C be x.
Then CA=4.5x and LA=3x
Inventory = CA —LA 
36,000 4.5x -3x
\(\begin{array}{l}{x=\frac{36000}{1.5}} \\ {x=24,000}\end{array}\)
Hence, CL=24,000
\(C A=24,000 \times 4.5=Rs 1,08,000\) 

Ans : Current Asset= 5,00,000 
Current Ratio = 2.5:1 
quick Ratio=1:1
(i) \(\begin{array}{c}{\text { Current Ratio }=\frac{\text { Current Assets }}{\text { Current Liabilities }}} \\ {\frac{2.5}{1}=\frac{5,00,000}{\mathrm{CL}}}\end{array}\)
2.5CL= 5,00,000
\(\begin{array}{c}{\mathrm{CL}=\frac{5,00,000}{2.5}} \\ {\mathrm{CL}=Rs2,00,000}\end{array}\)
(ii) \(\begin{array}{r}{\text { Quick Ratio }=\frac{\text { Quick Assets }}{\text { Current Liabilities }}} \\ {\frac{1}{1}=\frac{\text { Quick Assets }}{2,00,000}}\end{array}\)
\(\begin{aligned} 2,00,000 &=\text { Quick Assets } \\ \text { Stock } &=\text { Current Assets - Quick Assets } \\ &=5,00,000-2,00,000 \\ &=Rs 3,00,000 \end{aligned}\) 

Ans : Average stock =Rs 80,000 
Stock Turnover Ratio = 6 times 
Selling Price = 25% above cost
\(\mathrm{STR}=\frac{\text { cost of goods sold }}{\text { Average Stock }} ; 6=\frac{COG \mathrm{S}}{80,000}\)
\(\begin{array}{c}{\mathrm{COGS}=80,000 \times 6=Rs 4,80,000} \\ {\text { Selling Price }=\mathrm{COGS}+25 \% \text { of COGS }}\end{array}\)
\(\begin{array}{l}{=4,80,000+\left(\frac{25}{100} \times 4,80,000\right)} \\ {=4,80,000+1,20,000=Rs 6,00,000}\end{array}\)
Gross Profit = Selling Price - COGS 
= 600,000-4,80,000 Rs=Rs 1,20,000 

Ans : Annual sales =Rs 2,00,000 
Gross profit = 20% on cost
Opening Stock = Rs 38,500 
Closing Stock = Rs 41,500 
Let COGS = x
Then \(\begin{array}{l}{\text { Gross Profit }=20 \% \text { of } x ;=\frac{20}{100} \times x=\frac{1}{5} \times x=\frac{x}{5}} \\ {\text { Selling Price }=COG \mathrm{S}+\mathrm{GP}} \\ {2,00,000=\frac{x+x}{5}}\end{array}\)
\(\begin{aligned} 2,00,000 &=\frac{5 x+x}{5} ; 6 x=10,00,000 \\ x &=\frac{10,00,000}{6} ; x=Rs1,66,667 \end{aligned}\)
\(\begin{aligned} \text { Average Stock } &=\frac{\text { Opening Stock }+\text { Closing Stock }}{2} \\ &=\frac{38,500+41,500}{2}=40,000 \end{aligned}\)
Stock turnover ratio=\(=\frac{\text { COGS }}{\text { Average Stock }}=\frac{1,66,667}{40,000}=4.16\)times