**NCERT Solutions for Class 12 Accountancy II Chapter 5 Accounting Ratios** – Here are all the NCERT solutions for Class 12 Accountancy II Chapter 5. This solution contains questions, answers, images, explanations of the complete chapter 5 titled Accounting Ratios taught in Class 12. If you are a student of Class 12 who is using NCERT Textbook to study Accountancy II, then you must come across chapter 5 Accounting Ratios. After you have studied lesson, you must be looking for answers of its questions. Here you can get complete NCERT Solutions for Class 12 Accountancy II Chapter 5 Accounting Ratios.

## NCERT Solutions Class 12 Accountancy Chapter 5 Accounting Ratios

Here on **AglaSem Schools**, you can access to **NCERT Book Solutions** in free pdf for Accountancy for Class 12 so that you can refer them as and when required. The NCERT Solutions to the questions after every unit of NCERT textbooks aimed at helping students solving difficult questions.

For a better understanding of this chapter, you should also see summary of Chapter 5 Accounting Ratios , Accountancy, Class 12.

Class | 12 |

Subject | Accountancy |

Book | Accountancy 2 |

Chapter Number | 5 |

Chapter Name |
Accounting Ratios |

### NCERT Solutions Class 12 Accountancy chapter 5 Accounting Ratios

Class 12, Accountancy chapter 5, Accounting Ratios solutions are given below in PDF format. You can view them online or download PDF file for future use.

### Accounting Ratios

**NCERT Solutions for Class 12 Accountancy (Accountancy-II) Chapter 5 Accounting Ratios _1_ Download**

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### Download NCERT Solutions Class 12 Accountancy chapter 5 Accounting Ratios In PDF Format

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### Question & Answer

Q.1:Current liabilities of a company are Rs. 5,60,000, current ratio is 2.5:1 and quick ratio is 2:1. Find the value of the Inventories.

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) \(\begin{aligned} \text { Stock } &=\text { Current Assets - Quick Assets } \\ &=14,00,000-11,20,000=2,80,000 \end{aligned}\)

Q.2:Current ratio = 4.5:1, quick ratio = 3:1.Inventory is Rs. 36,000. Calculate the current assets and current liabilities.

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 \(C A=24,000 \times 4.5=Rs 1,08,000\)

Q.3:Current assets of a company are Rs. 5,00,000. Current ratio is 2.5:1 and Liquid ratio is 1:1. Calculate the value of current liabilities, liquid assets and inventories.

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) \(\begin{array}{r}{\text { Quick Ratio }=\frac{\text { Quick Assets }}{\text { Current Liabilities }}} \\ {\frac{1}{1}=\frac{\text { Quick Assets }}{2,00,000}}\end{array}\) \(\begin{aligned} 2,00,000 &=\text { Quick Assets } \\ \text { Stock } &=\text { Current Assets - Quick Assets } \\ &=5,00,000-2,00,000 \\ &=Rs 3,00,000 \end{aligned}\)

Q.4:Calculate the amount of gross profit Average stock Rs.80,000. Stock turnover ratio = 6 times Selling price = 25% above cost

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

Q.5:Calculate Inventory Turnover Ratio:

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

## NCERT / CBSE Book for Class 12 Accountancy

You can download the NCERT Book for Class 12 Accountancy in PDF format for free. Otherwise you can also buy it easily online.

- Click here for NCERT Book for Class 12 Accountancy
- Click here to buy NCERT Book for Class 12 Accountancy

### All NCERT Solutions Class 12

- NCERT Solutions for Class 12 Physics
- NCERT Solutions for Class 12 Biology
- NCERT Solutions for Class 12 Chemistry
- NCERT Solutions for Class 12 Maths
- NCERT Solutions for Class 12 Accountancy
- NCERT Solutions for Class 12 Business Studies
- NCERT Solutions for Class 12 Geography
- NCERT Solutions for Class 12 Political Science
- NCERT Solutions for Class 12 History
- NCERT Solutions for Class 12 Psychology
- NCERT Solutions for Class 12 Sociology
- NCERT Solutions for Class 12 Economics
- NCERT Solutions for Class 12 English
- NCERT Solutions for Class 12 Hindi

### All NCERT Solutions

You can also check out NCERT Solutions of other classes here. Click on the class number below to go to relevant NCERT Solutions of Class 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12.

Class 1 | Class 2 | Class 3 |

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