Less : Fixed Cost (allocated to divisions in proportion to volumes of Sales)
8.0
4.8
7.2
20.0
Profit (Loss)
4.0
(2.4)
5.4
7.0
After allocating the company’s fixed overheads to products the Fertilizers, division incurs a loss of Rs 2.4 crore.Should the company drop this division?
Raw material used by the firm is in short supply and the firm can expect a maximum supply of 350 lakh kg for next year.Is the company’s projected sales mix most profitable or can it be changed for the better?
Share Capital Rs. 8,00,000
Current assets Rs. 5,00,000
Credit revenue from operations Rs. 3,00,000
Cash revenue from operations 75% of Credit revenue from operations
9% long term borrowings Rs. 3,40,000
Current Liabilities Rs. 2,90,000
Cost of revenue from operations Rs.6,80,000
what can be expected questions and answers for viva in accountancy practical on final accounts,accounting ratios and cash flow statements.The practical exam is on 30/1/14...i want some sample questions on viva before 29/1/14.....
Ts grewal solutions
What about Accountancy Project? Is there CBSE guidelines about the project? What is the topic of the Project, and how to make it?
trade receivable turnover ratio - 4 times
cost of revenue from operation - 640000
gross profit ratio - 20%
closing trade receivable is 20000 more than opening trade receivables.
Who are the users of financial ratio analysis? Explain the significance of ratio analysis to them?
Can a partner be exempted from sharing losses in a firm? If yes, under what circumstaances
Financial ratio analysis is conducted by four groups of analysts: managers, equity investors, long-term creditors, and short-term creditors. What is the primary emphasis of each of these groups in evaluating ratios?
1) Encashment of employees earned leave payable on retirement.
2) Employees earned leave payable on retirement.
calculate current ratio.
Inventory Turnover:4 times
Inventory in the beginning was Rs.20000 less than Inventory at the end.
Revenue from Operations Rs.600000.
Gross Profit Ratio 25%.
Current Liabilities Rs.60000.
Quick Ratio 0.75:1
que1: stock turnover ratio 5 times, cost of goods sold 18,99,000. calculate opening stock and closing stock if stock at the end is 2.5 times more than that in the beginning.?
que2: 1) 3,00,000 is the cost of goods soid.inventory turnover ratio 8 times; stock in the beginning is 2 times more than the stock at the end.calculate the value of opening and closing stock.?
2) a trader carries an average stock of 80,000. his stock turnover ratio is 12times.find out his profit;if he sells at a profit of 20%on sales?
que3: cash sales 20% of total sales, credit sales4,50,000, gross profit 25% on cost, opening stock 37,500; closing stock1,12,500?
que4: a ltd copmpany made credit sales of 4,00,000 during the financial period if the collection period is 36 days and year is assumed to be 360days, calculate the debtors turnover , average debtor?
1. Current Ratio
2.Inventory Turnover Ratio
3.Working Capital
4.Working Capital Turnover
5.Cost of Goods Sold
Thank you in advance.
Calculate current ratio from the following
working capital rs 45000; total debt rs 100000 and lang term debt rs 70000
Solutioncurrent liabilities = total debt - long term debt
= ₹100000-70000=30000
current assets = working capital + current liabilities
= 45000+30000=75000
current ratio = C a/C l= 75000/30000=2.5:1
in this iam not able to u derstand that why we have added current liability to ccurrent assets
Q3) DSQ Company Ltd, a diversified company, has three divisions, cement, fertilizers and textiles. The summary of the company’s profit is given below :
(Rs/Crore)
Cement
Fertilizer
Textiles
Total
Sales
20.0
12.0
18.0
50.0
Less : Variable Cost
8.0
9.6
5.4
23.0
Contribution
12.0
2.4
12.6
27.0
Less : Fixed Cost (allocated to divisions in proportion to volumes of Sales)
8.0
4.8
7.2
20.0
Profit (Loss)
4.0
(2.4)
5.4
7.0
After allocating the company’s fixed overheads to products the Fertilizers, division incurs a loss of Rs 2.4 crore. Should the company drop this division?
Q2) Usha Company produces three consumer products : P, Q and R. The management of the company wants to determine the most profitable mix. The cost accountant has supplied the following data.
Usha Company : Sales and Cost Data
Description
Product
Total
P
Q
R
Material Cost per unit
Quantity (Kg)
1.0
1.2
1.4
Rate per Kg (Rs)
50
50
50
Cost per unit (Rs)
50
60
70
Labour Cost per unit
30
90
90
Variable Overheads per unit
15
10
25
Fixed Overheads (Rs .000)
9,175
Current Sales (Units ,000)
100
50
60
210
Projected Sales (Units ,000)
109
55
125
289
Selling Price per unit (Rs)
150
200
270
Raw material used by the firm is in short supply and the firm can expect a maximum supply of 350 lakh kg for next year. Is the company’s projected sales mix most profitable or can it be changed for the better?
calculate debt equity ratio
total assets:2,30,000
total debt:1,50,000
current liabilities:30,000
answers of v wason..........
of chapter accounting ratios
Debtors Turnover Ratio=4times
Stock Turnover Ratio= 8times
Current ratio= 3:1
Average Debtors= 1,80,000
Working Capital Turnover Ratio= 8times
Cash sales 25% of total sales
Gross Profit Ratio= 33.33%
Closing Stock Rs 10,000 in excess of opening stock
Based on the above information, Calculate
Why are preliminary expenses deducted , to calculate Shareholder's funds; while calculating Debt-equity ratio?
a) Purchased a fixed asset for Rs. 50,000 on long term deferred payment basis.
b) Declaration of final dividend.
what are ficticious assets???
Capital Employed 40,00,000
Investment 2,40,000
Plant 7,00,000
Trade Receivables 4,00,000
Cash and Cash Equivalents 3,60,000
Equity Share Capital 22,50,000
8% Debentures 18,00,000
Capital Reserve 3,40,000
Surplus (Bal in statement of P/L) (50,000)
What are liquidity ratios? Discuss the importance of current and liquid ratio.
debtors, turnover ratio: 4 times; stock turnover ratio :8 times; current ratio : 3; average debtor: RS. 1,80,000; working capital turnover ratio: 8 times ; cash sales 25 % of total sales; gross profit ratio 33 x 1/3%; closing stock RS. 10,000 in excess of opening stock.
find (1). sales; (2). cost of good sold (3) closing stock....?
calculate debt equity ratio,total asset to debt ratio and proprietory ratio
total assets=2,30,000
total debt=1,50,000
current liabilities=30,000
i) Gross profit Ratio ii) Working capital turnover ratio iii) Proprietary ratio iv) Debt Equity ratio
Current assets Rs. 5,00,000
Credit revenue from operations Rs. 3,00,000
Cash revenue from operations 75% of Credit revenue from operations
9% long term borrowings Rs. 3,40,000
Current Liabilities Rs. 2,90,000
Cost of revenue from operations Rs.6,80,000
CALCULATE OPERATING RATIO AND PROPRIETARY RATIO :
CASH SALES = 10,00,000 ;
CREDIT SALES = 120% OF CASH SALES ;
OPERATING EXPENSES = 10% OF TOTAL SALES ;
RATE OF GROSS PROFIT = 40% ;
OPENING STOCK = 1,50,000 ;
CLOSING STOCK = 1,70,000 ;
CURRENT ASSETS = 3,00,000 ;
CURRENT LIABILITIES = 2,00,000 ;
SHARE CAPITAL = 6,00,000 ;
FIXED ASSETS = 5,00,000
calculate operating profit ratio if operating ratio is 78%(Ans is 22 %) but how?
Q.22. Opening Inventory Rs. 1,20,000; Closing Inventory 1.5 times of opening inventory; Inventory
Turnover Ratio 6 times; Selling price 33% above cost. Calculate the Gross Profit ratio.
calculate opening inventory from flowing ; 1]closing inventory -68000
2]total sales-480000[including cash sales 120000]
3]total purchase-360000[including credit purchase 239200]
goods are sold at a profit of 25% on cost.
calculate proprietary ratio:
NET SALES = Rs. 5,00,000 ;
GROSS PROFIT = Rs. 1,50,000 ;
TOTAL CURRENT ASSETS = Rs. 3,00,000 ;
CLOSING STOCK = Rs. 25,000 ;
PREPAID INSURANCE = Rs. 5,000 ;
TOTAL CURRENT LIABILITIES = Rs. 1,50,000 ;
SHARE CAPITAL = Rs. 4,00,000 ;
RESERVES AND SURPLUS = Rs. 50,000 ;
PRELIMINARY EXPENSES = Rs. 7,000 ;
FIXED ASSETS = Rs. 6,00,000
what is capital employed?
1) Trade receivable turnover ratio and
2) trade payable turnover turnover ratio.
Information:
revenue from operations 1500000 creditors 200000
bills payable 87000
bills receivable 79000
debtors 221000
purchase 1148000.
Why marketable securities, advance against salary, interest accrued and fixed deposits with bank are put under CURRENT ASSETS ?
Why income received in advance and provision for tax are put under CURRENT LIABILITIES ?
How payment of dividend will improve the current ratio ?
Why quick assets does not include stock, prepaid insurance, advance salary and advance for purchase of land ?
Calculate gross profit ratio:
Avg. stock = Rs. 15,000 ; stock turnover ratio = 5 times ; selling price = 125% of the cost.
Calculate net profit ratio :
Gross Profit Ratio of a company was 30% . Its credit sales were Rs. 4,00,000 and its cash sales were 80% of the total sales. Indirect expenses of the company were Rs. 25,000 and direct expense were Rs. 30,000.
Hello,
i am having problems with accounting ratios.
Please help me understan activity ratios and also what does it mean when it is given
20% gross profit on cost or 20% gross profit on Sales.
How do i apply them ahead..
Please help..!