Hridaan’s Edumax

S1 - 18, Gate 3, Dosti Shoppe

Imperia, Manpada Thane

Accountancy - Ration Analysis

CLASS 12 - ACCOUNTANCY

Time Allowed : 1000 mins Maximum Marks : 325

Section A

1 Following is the [3]

Balance Sheet of the
Bharati Ltd. as at 31st
March, 2019:

You are required to

calculate Return on
Investment for the year
2018 - 19 with
reference to Opening
Capital Employed.[
 Hint: 10% Investments
are Trade Investments.

2 X Ltd., has a current [3]

ratio of 3.5 : 1 and
quick ratio of 2 : 1. If
excess of current assets
over quick assets
represented by
inventories is₹ 24,000,
calculate current assets
and current liabilities.
3 From the following [3]
information, calculate
Return on Investment:

4 From the following, [3]

compute the Current
Ratio and give your
comments on it:

5 From the following [3]

 particulars taken from
the books of Tata Press
Ltd., calculate Trade
Payables Turnover
Ratio and Average
Payable Period (in
days):

6 From the following [3]

information, compute
Debt to Equity Ratio:

7 Calculate Debt to [3]

Equity Ratio from the
following information:

8 From the following [3]

information, determine
Opening and Closing
inventories:Inventory
Turnover Ratio 5
Times, Total sales ₹
2,00,000, Gross Profit
Ratio 25%. Closing
Inventory is more by ₹
 4,000 than the Opening
Inventory.
9 Calculate ‘Debt - [3]
Equity Ratio’ from the
following
information:Total
Assets : ₹ 3,50,000;
Total Debt : ₹
2,50,000; Current
Liabilities : ₹ 80,000
10 Calculate Current Ratio [3]
from the
following:Working
Capital ₹ 1,92,000;
Long - term Debt ₹
80,000 and Total Debt
₹ 2,00,000.
11 Calculate Inventory [3]
Turnover Ratio from
the following
information:Revenue
from Operations
(Sales): ₹ 10,00,000
Gross Profit: 20% of
Revenue from
Operations Purchases:
₹ 8,40,000 Closing
Inventory: ₹ 1,80,000
12 Compute Debt Equity [3]
Ratio from the
following information:

13 What does too high [3]

Trade Receivables
 Turnover
Ratioindicate?
14 Calculate Debtors [3]
Turnover Ratio from
the following
information:

15 Calculate Debt Equity [3]

Ratio from the
following particulars:

What conclusions do
you draw about the
company on the basis
of this ratio?

16 Calculate the debtors [3]

turnover ratio and
average collection
period from the
following
information:Cost of
Goods Sold. Rs.
3,00,000 Gross Profit
on Cost 25% Cash Sales
20% of total sales
Opening Debtors Rs.
50,000 Closing Debtors
Rs. 1,00,000
17 A company had [3]
Current Assets of₹
 3,00,000 and Current
Liabilities of ₹
1,40,000. Afterwards it
purchased goods for ₹
20,000 on credit.
Calculate Current Ratio
after the purchase.
18 From the following [3]
information, calculate
Interest coverage
Ratio:

19 Calculate Current Ratio [3]

from the following
information:

20 Calculate Inventory [3]

Turnover Ratio from
the following
particulars:Cross of
Revenue from
Operation (Cost of
Goods Sold)₹ 6,40,000
Gross Profit 20% on
Sales Closing
Inventory: 4 times of
Opening Inventory
Opening Inventory:
10% of Cost of
Revenue from
Operations.
21 Calculate the amount of [3]
Opening and Closing
Trade Receivables from
the following:Trade
Receivables Turnover
 Ratio: 6 Times Cost of
Revenue from
Operations ₹ 6,00,000
Gross Profit Ratio: 20%
on cost Cash Revenue
from Operations being
25% of total Revenue
from Operations.
Opening Trade
1
Receivables were t h
4
of Closing Trade
Receivables
22 Calculate Trade [3]
Payables Turnover
Ratio from the
following
information:Credit
Purchases during the
year ₹ 6,20,000
Purchase Returns (Out
of credit purchase) ₹
20,000 Opening
Creditors ₹ 1,00,000
Closing Creditors ₹
1,40,000 Opening Bills
Payable ₹ 25,000
Closing Bills Payable ₹
35,000
23 Revenue from [3]
Operations₹ 9,00,000,
Gross Profit 25% on
Cost, Operating
Expenses ₹ 90,000.
Calculate Operating
Ratio.
24 Calculate Operating [3]
Ratio from the
following
information:Revenue
from Operations
(Sales) ₹ 2,60,000
Revenue from
Operations Return
 (Sales Return) ₹
10,000 Cost of Revenue
from Operations ₹
1,50,000 Selling
Expenses ₹ 40,000
Administrative
Expenses ₹ 20,000
25 From the following [3]
information,
calculatethe following
ratios:

1. Liquid Ratio

2. Debt - Equity
Ratio

Information: Net
Revenue from
Operations =₹
3,00,000 Gross Profit =
₹ 1,00,000 Total
Current Assets₹
2,00,000 Closing
Inventory ₹ 20,000
Prepaid Insurance₹
4,000 Total Current
Liabilities₹ 1,20,000
Share Capital ₹
3,50,000 Reserves and
Surplus ₹ 33,000 Non -
Current Assets ₹
4,30,000

26 State with reason [4]

whether the following
transactions will
increase, decrease or
not change the Return
on InvestmentRatio:

1. Purchase of
machinery of₹
5,00,000 by
issue of equity
shares.
 2. Charging
depreciation of
₹ 12,500 on
machinery.

3. Redemption of
debentures by
cheque₹
2,00,000.

4. Converting₹
1,00,000, 9%
Debentures into
equity shares.

27 Current Ratio of a [4]

company is 2 : 1. State
giving reasons, which
of the following would
improve, reduce or not
change the ratio:

1. Repayment of a
current liability.

2. Purchase of
goods for cash.

3. Sale of office
equipment for₹
4,000 (Book
value ₹ 5,000).

4. Purchase of
Stock - in -
trade on credit.

5. Sale of goods₹
11,000 (Cost ₹
10,000).

6. Payment of
dividend.

28 Cash Revenue from [4]

Operations (Cash
Sales)₹ 2,00,000 Credit
Revenue from
 Operations (Credit
Sales)₹ 4,00,000 Gross
Profit₹ 1,00,000
Inventory Turnover
Ratio 5 Times Calculate
the value of Opening
and Closing Inventory
in each of the following
alternative cases: Case
I If closing
inventorywas ₹ 80,000
in excess of opening
inventory. Case II If
closing inventory was 3
times that in the
beginning. Case III If
closing inventory was 3
times more than that in
the beginning. Case IV
If opening inventory
1
was rd of inventory
3
at the end.
29 Assuming that the Debt [4]
to Equity ratio is 2,
State giving reasons
whether this ratio
would increase,
decrease or remain
unchanged in the
following cases:

1. Purchase of
fixed assets on a
credit of two
months

2. Purchase of
fixed assets on
long - term
deferred
payment basis

3. Issue of new
shares for cash
 4. Issue of bonus
shares

5. Sale of fixed
assets at a loss
of₹ 3,000

30 Calculate Current Asset [4]

Turnover ratio if – Cost
of goods sold = Rs
7,50,000 Gross profit =
Rs 2,10,000 Total
Assets = Rs 3,00,000
Capital employed = Rs
3,00,000 Working
capital = Rs 60,000
31 1. From the [4]
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.

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.

32 1. What is meant [4]

by ‘profitability’
of business?

2. From the
following
information,
calculate
operating profit
ratio.Opening
stock Rs.
10,000,
purchases Rs.
1,20,000,
revenue from
operations Rs.
4,00,000,
purchase
returns Rs.
5,000, returns
from revenue
from operations
Rs. 15,000,
selling expenses
Rs. 70,000,
administrative
expenses Rs.
40,000, closing
stock Rs.
60,000.

33 From the following [4]

information, calculate:

1. Trade
Receivables
Turnover Ratio

2. Average
Collection
Period

3. Trade Payables
 Turnover Ratio

4. Average
Payment Period

Given: Revenue from

Operations ₹
3,60,00,000 Creditors
₹ 12,00,000 Bills
Receivable ₹ 8,00,000
Bills Payable ₹ 60,000
Purchases ₹
1,50,00,000 Debtors ₹
40,00,000

34 From the following [4]

calculate:

1. Net Profit Ratio

2. Operating Profit
Ratio

35 Current ratio is3 : 1 [4]

and quick ratio is
2:1.Inventories are Rs.
40,000.Calculate
current liabilities.
36 From the following [4]
information, calculate
the following ratios:

1. Current Ratio;

2. Debt to Equity
Ratio
 Revenue from
Operations (Net Sales)
₹ 1,00,000; cost of
Revenue from
Operations (Cost of
Goods Sold) was 80%
of sales; Equity Share
Capital ₹ 7,00,000;
General Reserve ₹
3,00,000; Operating
Expenses ₹ 10,000;
Quick Assets ₹
6,00,000; 9%
Debentures ₹
5,00,000; Closing
Inventory ₹ 50,000;
Prepaid Expenses ₹
10,000 and Current
Liabilities ₹ 4,00,000.

37 State giving reasons [4]

which of the following
transactions would
Improve; Reduce; or
Not change the Quick
Ratio if Quick Ratio is
(i) 1.5 : 1; (ii) 1 : 1 or
(iii) 0.8 : 1.

1. Payment of
Outstanding
Liabilities

2. Debentures of₹
2,00,000
converted into
equity shares

3. Purchase of
goods on Credit
of 2 months.

4. B/R endorsed to
a Creditor.

5. Sale of goods
Costing₹ 50,000
 for ₹ 45,000.

6. B/R drawn on a
Debtor.

7. Paid Rent₹
3,000 in
advance.

8. Trade
receivables
included a
debtor Sh.
Ashok who paid
his entire
amount due₹
9,700.

38 The motto of ’Pharma [4]

Ltd’ a company
engaged in the
manufacturing of low -
cost generic medicines,
is ’Healthy India’. Its
management and
employees are
hardworking, honest
and motivated. The net
profit of the company
doubled during the
year ended 31st March,
2014. Encouraged by
its performance, the
company decided to
pay bonus to all
employees at double
the rate than last
year.Following is the
comparative statement
of profit and loss of the
company for the years
ended on 31st March,
2013 and 2014.
 1. Calculate net
profit ratio for
the years ending
31st March,
2013 and 2014.

2. Identify any two

values which
‘Pharma Ltd’ is
trying to
propagate.

39 Calculate the following [4]

ratios from the details
given below:

1. Current Ratio

2. Liquid Ratio

3. Operating Ratio

4. Gross Profit
Ratio

Details: Current Assets

=₹ 70,000, Revenue
from Operations =₹
1,40,000 Net working
capital =₹ 30,000, Cost
of Revenue from
 Operations =₹ 68,000
Inventories =₹ 30,000

40 Current Ratio of a [4]

company is 2: 1. State
giving reasons, which
of the following will
improve, reduce or not
change the ratio:

1. Redemption of
Debentures

2. Purchase of
goods against
cheque

3. Purchase of
Loose Tools
against cash

4. Sale of the fixed

asset against
cheque

5. Receipt of
cheque from a
debtor

41 A business has a [4]

current ratio of 3: 1
and a quick ratio of 1.2:
1. If the working capital
is Rs. 1,80,000,
calculate the total
current assets and
value of Inventory.
42 1. Compute [4]
Working Capital
Turnover Ratio’
from the
following
information:
Cash Sales Rs.
1,30,000; Credit
Sales Rs.
3,80,000; Sales
 Return Rs.
10,000; Liquid
Assets Rs.
1,40,000;
Current
Liabilities Rs.
1,05,000 and
Inventory Rs.
90,000.

2. Calculate ‘Debt -
Equity Ratio’
from the
following
information:
Total Assets Rs.
3,50,000; Total
Debt Rs.
2,50,000 and
Current
Liabilities Rs.
80,000.

43 Assuming that the [4]

Current Ratio is 2.5 : 1,
state giving reasons,
which of the following
transactions would (i)
improve, (ii) reduce, or
(iii) not alter, the
current ratio?

1. Sale of goods for

Cash₹

40,000 (Cost ₹
45,000)

2. Sale of goods for

₹ 60,000 on
credit of 1
month (Cost of
Revenue from
Operations ₹
50,000)

3. Purchase of
 goods on credit
of 2 months.

4. Purchase of
Computer for
accounts
department on
credit of 3
months.

5. Payment of
Outstanding
liabilities.

6. Bills receivable
drawn on trade
receivables for 3
months.

7. Bills Payable
accepted for 2
months.

8. Bills Payable
paid at maturity.

9. Payment of
dividend
payable.

44 1. What is meant [4]

by ‘activity
ratios’?

2. From the
following
information
calculate
inventory
turnover ratio,
revenue from
operations Rs.
16,00,000,
average
inventory Rs.
2,20,000, gross
loss Rs.80,000
45 1. Calculate ‘Total [4]
Assets to Debt
ratio’ from the
following
information :

2. 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.

46 From the following [4]

information, calculate
Inventory Turnover
Ratio; Operating Ratio
and Working Capital
Turnover
Ratio:Opening
Inventory ₹ 28,000;
Closing Inventory ₹
22,000; Purchases ₹
46,000; Revenue from
Operations, i.e., Net
Sales ₹ 80,000; Return
₹ 10,000; Carriage
Inwards ₹ 4,000; Office
Expenses ₹ 4,000;
Selling and
Distribution Expenses
₹ 2,000; Working
Capital ₹ 40,000.
47 Calculate: (i) Gross [4]
 Profit Ratio, (ii)
Operating Ratio and
(iii) Inventory
Turnover Ratio from
the following:

48 From the following [4]

information, calculate:

1. Revenue from
Operations
(Sales)

2. Cost of Revenue
from Operations

3. Working Capital

4. Current Assets

Trade
ReceivablesTurnover
Ratio 4 timesCurrent
Liabilities₹ 5,000
Average Debtors₹
1,80,000 Working
Capital Turnover Ratio
8 times Cash Revenue
from Operations 25%
of Revenue from
Operations Gross Profit
1
Ratio 33 %
3

49 Opening Inventory₹ [4]

80,000; Purchases ₹
4,30,900; Direct
Expenses ₹ 4,000;
 Closing Inventory ₹
1,60,000;
Administrative
Expenses ₹ 21,100;
Selling and
Distribution Expenses
₹ 40,000; Revenue
from Operations, i.e.,
Net Sales ₹ 10,00,000.
Calculate Inventory
Turnover Ratio; Gross
Profit Ratio; and
Opening Ratio.
50 1. Calculate [4]
Revenue from
operations of
BN Ltd. From
the following
information :

2. 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.

51 The following [6]

information is
furnished to you
 You are required to
Calculate:

1. Dividend per
share

2. Dividend yield

3. Dividend payout
ratio

52 The Debt - Equity Ratio [6]

of a Company is 1:2.
Which of the following
would increase,
decrease or not change
it?

1. Repayment of
Long term
Borrowings of₹
40,000.

2. Purchased a
Fixed Asset for₹
50,000 on long -
term deferred
payment basis.

3. Issued new
equity shares of
₹ 75,000.

4. Payment of
Dividend
Payable.

5. Goods
purchased on
Credit.

6. Payment to
Trade Payables.

53 The Current Ratio of a [6]

Company is 2: 1. State,
giving reasons which of
the following
transactions would (a)
 improve, (b) reduce or
(c) not alter, the
current ratio:

1. Repayment of a
Current Liability

2. Purchasing
goods on credit

3. Sale of an Office
Equipment for₹
4,000 (Book
Value ₹ 5,000)

4. Sale of goods for

₹ 11,000 (Cost
₹ 10,000)

5. Payment of
Dividend
already
declared.

54 1. The ratio of [6]

Current Assets
(Rs. 3,00,000) to
Current
Liabilities (Rs.
2,00,000) is 1.5:
1.The
accountant of
the firm is
interested in
maintaining a
Current Ratio of
2: 1, by paying
off a part of the
current
liabilities.
Compute the
amount of
current
liabilities that
should be paid,
so that the
Current Ratio at
 the level of 2: 1
may be
maintained.

2. Total Debts of
Rimzim Ltd. are
Rs. 3,90,000,
Long - term
Debts are Rs.
3,00,000 and
working capital
is Rs. 1,80,000.
Calculate the
current ratio.

55 From the following [6]

information, calculate
any two of the
following ratios:

1. Operating Ratio

2. Stock Turnover
Ratio

3. Proprietary
Ratio

Information:

56 Explain the usefulness [6]

 of trend percentages in
interpretation of
financial performance
of a company.
57 State giving reason, [6]
whether the Current
Ratio will improve or
decline or will have no
effect in each of the
following transactions
if Current Ratio is 2 : 1:

1. Cash paid to
Trade Payables.

2. Bills Payable
discharged.

3. Bills Receivable
endorsed to a
creditor.

4. Payment of final
Dividend
already
declared.

5. Purchase of
Stock - in -
Trade on credit.

6. Bills Receivable
endorsed to a
Creditor
dishonoured.

7. Purchases of
Stock - in -
Trade for cash.

8. Sale of Fixed
Assets (Book
Value of₹
50,000) for ₹
45,000.

9. Sale of Fixed
Assets (Book
 Value of₹
50,000) for ₹
60,000.

58 Calculate any three of [6]

the following ratios
with the help of the
information given
below:

1. Operating Ratio

2. Gross Profit
Ratio

3. Quick Ratio

4. Working Capital
Turnover Ratio

5. Proprietary
Ratio.

Information: Equity
share capital₹
1,00,000; 8%
Preference share
capital ₹ 80,000; 9%
Debentures ₹ 60,000;
General Reserve ₹
10,000; Revenue from
operation ₹ 2,00,000;
Opening Inventory₹
12,000 Purchases ₹
1,20,000; Wages ₹
8,000; Closing
Inventory ₹ 18,000;
Selling and
Distribution Expenses
₹ 2000; Other current
assets ₹ 50,000; Fixed
assets ₹ 2,12,000 and
Current Liabilities ₹
30,000.

59 Assuming that the [6]

current ratio is 1.5 : 1,
state giving reasons,
which of the following
transactions would (i)
improve, (ii) reduce,
(iii) not alter the
current ratio: -

1. Realisation of
current assets

2. Payment of
current
liabilities

3. B/R
dishonoured

4. Sale of goods at
par

5. Sale of goods at
profit

6. Sale of goods at
loss

7. Purchase of
goods for cash

8. Purchase of
goods on credit
of 3 months

9. Sale of furniture
for cash

10. Sale of
machinery on a
credit of 5
months

11. Sale of land on

long - term
deferred
payment basis

12. Purchase of
motor car for
cash
60 Assuming that Debt to [6]
Equity Ratio is 2 : 1.
State giving reasons,
whether this ratio will
increase or decrease or
will have no change in
each one of the
following cases:

1. Purchase of a
Fixed Asset by
taking long -
term loan.

2. Sale of Fixed
Asset (Book
value₹ 40,000)
at a loss of ₹
5,000.

3. Sale of Fixed
Asset (Book
value₹ 40,000)
for ₹ 50,000.

4. Issue of New
Shares for Cash.

5. Issue of Bonus
Shares.

6. Redemption of
Debentures for
Cash.

7. Conversion of
Debentures into
Equity Shares

8. Declaration of
Final Dividend.

61 State giving reasons, [6]

which of the following
transactions would
improve, reduce or not
change the Current
Ratio, if Current Ratio
 of a company is 0.8 : 1:

1. Cash paid to
Trade Payables.

2. Purchase of
Stock - in -
Trade on credit.

3. Purchase of
Stock - in -
Trade for cash.

4. Payment of
Dividend
payable.

5. Bills Payable
discharged.

6. Bills Receivable
endorsed to a
Creditor.

7. Bills Receivable
endorsed to a
Creditor
dishonoured.

62 From the following [6]

information, prepare a
summarised Balance
Sheet as at March 31,
2019.

63 Calculate Operating [6]

Profit Ratio, in each of
the following
alternative cases:Case
1: Revenue from
Operations (Net Sales)
₹ 10,00,000; Operating
 Profit ₹ 1,50,000. Case
2: Revenue from
Operations (Net Sales)
₹ 6,00,000; Operating
Cost ₹ 5,10,000. Case
4: Revenue from
Operations (Net Sales)
₹ 3,60,000; Gross
Profit 20% on Sales;
Operating Expenses ₹
18,000 Case 4:
Revenue from
Operations (Net Sales)
₹ 4,50,000; Cost of
Revenue from
Operations ₹ 3,60,000;
Operating Expenses ₹
22,500. Case 5: Cost of
Goods Sold, i.e., Cost of
Revenue from
Operations ₹ 8,00,000;
Gross Profit 20% on
Sales; Operating
Expenses ₹ 50,000.
64 State with reason, [6]
whether the
Proprietary Ratio will
improve, decline or will
not change because of
the following
transactions if
Proprietary Ratio is 0.8
: 1:

1. Obtained a loan
of₹ 5,00,000
from State Bank
of India payable
after five years.

2. Purchased
machinery of₹
2,00,000 by
cheque.

3. Redeemed 7%
 Redeemable
Preference
Shares₹
3,00,000.

4. Issued equity
shares to the
vendor of
building
purchased for₹
7,00,000.

5. Redeemed 10%
redeemable
debentures of₹
6,00,000.

65 Quick Ratio of a [6]

company is 2 : 1. State
giving reasons, which
of the following
transactions would (i)
improve, (ii) reduce,
(iii) Not change the
Quick Ratio:(a)
Purchase of goods for
cash; (b) Purchase of
goods on credit; (c)
Sale of goods (costing
₹ 10,000) for ₹
10,000; (d) Sale of
goods (costing ₹
10,000) for ₹ 11,000;
(e) Cash received from
Trade Receivables.
66 Cash Revenue from [6]
Operations₹ 1,00,000;
Credit Revenue from
Operations ₹ 3,00,000;
Gross Profit 30% on
Revenue from
Operations; Inventory
Turnover Ratio = 2
Times. Calculate
Opening Inventory and
Closing Inventory in
 each of the following
cases: Case 1: If
1
Opening Inventory is
3
rd of the inventory at
the end. Case 2: If
Closing Inventory is
25% less than the
inventory in the
beginning. Case 3: If
Opening Inventory is
75% of Closing
Inventory and Closing
Inventory is 30% of
Revenue from
Operations.
67 Calculate Opening and [6]
Closing Trade
Receivables from the
following information
if Trade Receivables
Turnover Ratio is 3
Times:

1. Cash Revenue
from Operations
1
is rd of Credit
3
Revenue from
Operations.

2. Cost of Revenue
from Operations
₹ 2,40,000.

3. Gross Profit
25% on Cost of
Revenue from
Operations.

4. Trade
Receivables at
the end were 3
times more than
that of in the
beginning.
68 Cash Revenue from [6]
Operations (Cash
Sales)₹ 2,00,000, Cost
of Revenue from
Operations or Cost of
Goods Solds ₹
3,50,000; Gross Profit
₹ 1,50,000; Trade
Receivables Turnover
Ratio 3 Times.
Calculate Opening and
Closing Trade
Receivables in each of
the following
alternative cases; Case
1: If Closing Trade
Receivables were ₹
1,00,000 in excess of
Opening Trade
Receivables. Case 2: If
trade Receivables at
the end were 3 times
than in the beginning.
Case 3:If Trade
Receivables at the end
were 3 times more
than that of in the
beginning.
69 State giving reason, [6]
whether the Current
Ratio of a company will
improve or decline or
not change in each of
the following
transactions if Current
Ratio is (i) 1 : 1, and (ii)
0.8 : 1:

1. Cash paid to
creditors.

2. Bills Payable
discharged.

3. Bills Receivable
endorsed to a
 creditor.

4. Goods
purchased on
credit.

5. Purchased
goods for cash.

6. Bills Receivable
endorsed to a
creditor
dishonoured.

7. Payment of
dividend
payable.

8. Sale of goods for

₹ 15,000 (Cost
₹ 10,000).

9. Sale of old
furniture for₹
12,000 (Book
Value ₹
15,000).

70 Calculate trade [6]

receivables turnover
ratio from the
following:Credit
Revenue from
Operations ₹

2,00,000; Opening
Trade Receivables ₹
30,000 and Closing
Trade Receivables ₹
50,000. State, giving
reason, which of the
following transactions
will (a) increase, (b)
decrease or (c) not
alter the trade
receivables turnover
ratio.
 1. Collection from
trade
receivables₹
10,000

2. Sold goods on
credit₹ 20,000

3. Revenue from
Operations
returns₹ 4,000

4. Credit purchase
₹ 50,000

71 What are the various [6]

types of ratios?
72 Calculate Trade [6]
Payables Turnover
Ratio for the year 2018
- 19 in each of the
alternative cases:Case
1: Closing Trade
Payables ₹ 45,000; Net
Purchases ₹ 3,60,000;
Purchases Return ₹
60,000; Cash Purchases
₹ 90,000. Case 2:
Opening Trade
Payables ₹ 15,000;
Closing Trade Payables
₹ 45,000; Net
Purchases ₹ 3,60,000.
Case 3: Closing Trade
Payables ₹ 45,000; Net
Purchases ₹ 3,60,000.
Case 4: Closing Trade
Payables (including ₹
25,000 due to a
supplier of machinery)
₹ 55,000; Net Credit
Purchases ₹ 3,60,000.
73 Assuming that the Debt [6]
- Equity Ratio is 2 : 1,
state, giving reasons,
which of the following
transactions would (i)
Increase; (ii) Decrease;
(iii) Not alter the Debt -
Equity Ratio:

1. Issue of new
shares
(Preference/Eq
uity) for Cash.

2. Issue of new
shares
(Preference/Eq
uity) against
purchase of
fixed asset.

3. Buy - back of its

own shares by a
Company.

4. Issue of
Debentures for
Cash.

5. Issue of
Debentures
against
purchase of
fixed asset.

6. Repayment of
Long term
Borrowings.

7. Conversion of
Debentures into
Equity
Shares/Preferen
ce Shares.

8. Sale of a fixed
asset at par.

9. Sale of a fixed
asset at profit.

10. Sale of a fixed

 asset at loss.

11. Purchase of a
fixed asset on a
credit of 2
months.

12. Purchase of a
fixed asset on
long - term
deferred
payment basis.

13. Issue of Bonus

Shares.

74 Assuming that the [6]

Current Ratio is 2 : 1,
state, giving reasons,
which of the following
transactions would (i)
improve, (ii) reduce, or
(iii) not alter, the
current ratio:

1. Cash collected
from trade
receivables or
cash received
against B/R on
its maturity.

2. B/R received
from trade
receivables or
B/R drawn.

3. B/R endorsed to
trade payables.

4. B/R
dishonoured.

5. Sale of
Inventories at
par for cash.

6. Sale of
 Inventories at
profit for cash.

7. Sale of
Inventories at
loss for cash.

8. Sale of
Inventories at
par on credit.

9. Sale of
Inventories at
profit on credit.

10. Sale of
Inventories at
loss on credit.

11. Purchase of
Inventories for
cash.

12. Purchase of
Inventories on
credit.

75 From the information [6]

given below, calculate
Trade Receivables
Turnover Ratio:Credit
Revenue from
Operations, i.e., Credit
Sales ₹ 8,00,000;
Opening Trade
Receivables ₹
1,20,000; and Closing
Trade Receivables ₹
2,00,000. State giving
reason, which of the
following would
increase, decrease or
not change Trade
Receivables Turnover
Ratio:

1. Collection from
Trade
 Receivables₹
40,000.

2. Credit Revenue
from
Operations, i.e.,
Credit Sales₹
80,000.

3. Sales Return₹
20,000.

4. Credit Purchase
₹ 1,60,000.