DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios: You can totally rely on the DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios for your Class 12 Accountancy examination. The subject matter experts have designed accurate solutions to help you in exam prep and class assignments.
Download the Free PDF of DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios using the download link given in the blog. To know more, read the whole blog.
Download DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios PDF
DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios
Access Solutions Of DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios
Question 1
From the following, compute the current ratio.
| ₹ | |
| Non-Current Investments | 1,00,000 |
| Current Investments | 40,000 |
| Inventories (including loose tools of ₹ 50,000/-) | 2,80,000 |
| Trade Receivables: | |
| Sundry Debtors | 1,60,000 |
| Bills Receivables | 20,000 |
| Trade Payables: | |
| Sundry Creditors | 1,20,000 |
| Bills Payables | 10,000 |
| Long-term Borrowings | 2,00,000 |
| Short-term Borrowings | 50,000 |
| Short-term Provision (Provision for Tax) | 20,000 |
| Cash and Bank Balance | 30,000 |
Solution:
Current Assets = Current Investments + Inventories (Excluding Loose Tools) + Trade Receivables (Sundry Debtors + Bills Receivables) + Cash and Bank Balance
= 40,000 + 2,30,000 + 1,60,000 + 20,000 + 30,000
= ₹. 4,80,000/-
Current Liabilities = Trade Payables (Sundry Creditors + Bills Payables) + Short term Borrowings + Short term Provision (Provision for Tax)
= 1,20,000 + 10,000 + 50,000 + 20,000
= ₹. 2,00,000/-
Current Ratio= {4,80,000}/{2,00,000} = 2:4:1
Question 2
The following particulars are given to you:
| ₹ | ||
| Trade Investments | 2,50,000 | |
| Marketable Securities | 40,000 | |
| Tangible Fixed Assets | 6,00,000 | |
| Intangible Assets (Goodwill) | 1,00,000 | |
| Trade Receivables | 2,00,000 | 1,80,000 |
| Less: Provision for Doubtful Debts | 20,000 | |
| Cash and Bank Balance | 80,000 | |
| Trade Payables | 1,20,000 | |
| Rent Payables | 10,000 | |
| Dividend Payable | 30,000 | |
| Inventories | 3,90,000 | |
| Long-term Borrowings (8% Debentures) | 2,80,000 | |
| Short-term Borrowings (Bank Overdraft) | 25,000 | |
| Short-term Provisions: | ||
| Provisions for Tax | 55,000 | |
| Income Tax paid in Advance | 30,000 |
Calculate the Liquidity Ratios.
Solution:
Liquidity Ratios include the following 2 ratios. Namely,
- Current ratio
- Quick ratio
Current Assets = Marketable Securities + Trade Receivables + Cash and Bank Balance + Inventories + Income Tax paid in advance
= 40,000 + 1,80,000 + 80,000 + 3,90,000 + 30,000
= ₹. 7,20,000/-
Current Liabilities = Trade Payables + Rent Payable + Dividend Payable + Bank Overdraft + Provisions for Tax
= 1,20,000 + 10,000 + 30,000 + 25,000 + 55,000
= ₹. 2,40,000/-
Ratio={7,20,000}/{2,40,000}
=3:1
Liquid Assets = Current Assets – Inventories – Income Tax Paid in Advance
= 7,20,000 – 3,90,000 – 30,000
= 3,00,000
Ratio = {3,00,000}/{2,40,000}
= 1.25:1
This is the complete blog on DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios. To know more about the CBSE Class 12 Accountancy exam, ask in the comments.
FAQs on DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios
From where can I find the download link for the DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 – Accounting Ratios PDF?
You can find the download link of DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 – Accounting Ratios PDF in the above blog.
How much does it cost to download the DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 – Accounting Ratios PDF?
You can download DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 – Accounting Ratios PDF for free.
Can I access the DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios PDF Offline?
Once you have downloaded the DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios PDF online, you can access it offline whenever you want.
Is the DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 – Accounting Ratios a credible source for Class 12 Accountancy exam preparation?
Yes, the solutions of DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios are prepared by the subject matter experts, hence credible.