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Page No 4.100:

Question 85:

Answer:


 

Debt  =  Long Term Borrowings + Long Term Provision
   =  Rs 30, 00,000 
 
Equity  =  Share Capital + Reserve and Surplus
   =  5, 00,000 + 15, 00,000 + 1, 00,000 + 4, 00,000
   =  Rs 25, 00,000
 

Page No 4.100:

Question 86:


 

Debt  =  Long Term Borrowings + Long Term Provision
   =  Rs 30, 00,000 
 
Equity  =  Share Capital + Reserve and Surplus
   =  5, 00,000 + 15, 00,000 + 1, 00,000 + 4, 00,000
   =  Rs 25, 00,000
 

Answer:


 

Debt  =  Long Term Borrowings + Long Term Provision
   =  2, 60,000 + 40,000
   =  Rs 3, 00,000



Page No 4.101:

Question 87:


 

Debt  =  Long Term Borrowings + Long Term Provision
   =  2, 60,000 + 40,000
   =  Rs 3, 00,000

Answer:


 

Shareholder’s Fund  =  Share Capital + Reserve and Surplus
   =  6, 00,000 + 1, 30,000
   =  Rs. 7, 30,000

Page No 4.101:

Question 88:


 

Shareholder’s Fund  =  Share Capital + Reserve and Surplus
   =  6, 00,000 + 1, 30,000
   =  Rs. 7, 30,000

Answer:

Page No 4.101:

Question 89:

Answer:

Page No 4.101:

Question 90:

Answer:

Page No 4.101:

Question 91:

Answer:



Page No 4.102:

Question 92:

Answer:

(A)


(B)

Page No 4.102:

Question 93:

(A)


(B)

Answer:

Page No 4.102:

Question 94:

Answer:

Page No 4.102:

Question 95:

Answer:

Inventory Turnover Ratio (2015) = Cost of Revenue from OperationsAverage Stockor, Inventory Turnover Ratio (2015) = 42,00014,000 = 3 Times

Inventory Turnover Ratio (2016) = Cost of Revenue from OperationsAverage Stockor, Inventory Turnover Ratio (2016) = 50,00020,000 = 2.5 Times

Page No 4.102:

Question 96:

Inventory Turnover Ratio (2015) = Cost of Revenue from OperationsAverage Stockor, Inventory Turnover Ratio (2015) = 42,00014,000 = 3 Times

Inventory Turnover Ratio (2016) = Cost of Revenue from OperationsAverage Stockor, Inventory Turnover Ratio (2016) = 50,00020,000 = 2.5 Times

Answer:

Page No 4.102:

Question 97:

Answer:

Page No 4.102:

Question 98:

Answer:

Page No 4.102:

Question 99:

Answer:

Page No 4.102:

Question 100:

Answer:



Page No 4.103:

Question 101:

Answer:

Page No 4.103:

Question 102:

Answer:

(A)


(B)

Page No 4.103:

Question 103:

(A)


(B)

Answer:

Page No 4.103:

Question 104:

Answer:

Page No 4.103:

Question 105:

Answer:

Page No 4.103:

Question 106:

Answer:

Current Assets  =  Debtors + Prepaid Expenses + Cash + Marketable Securities + Inventory
   =  2, 00,000 + 20,000 + 60,000 + 40,000 + 80,000 
   =  Rs 4, 00,000
 
Current Liabilities  =  Bills Payables + Creditors + Expenses Payables
   =  40,000 + 80,000 + 80,000
   =  Rs 2, 00,000 

Page No 4.103:

Question 107:

Current Assets  =  Debtors + Prepaid Expenses + Cash + Marketable Securities + Inventory
   =  2, 00,000 + 20,000 + 60,000 + 40,000 + 80,000 
   =  Rs 4, 00,000
 
Current Liabilities  =  Bills Payables + Creditors + Expenses Payables
   =  40,000 + 80,000 + 80,000
   =  Rs 2, 00,000 

Answer:

Page No 4.103:

Question 108:

Answer:

Page No 4.103:

Question 109:

Answer:



Page No 4.104:

Question 110:

Answer:

Current Assets  =  Debtors + Stock + Cash
   =  10,000 + 15,000 + 15,000
   =  Rs. 40,000
 
Current Liabilities  =  Bills Payables + Creditors
   =  6,000 + 14,000
   =  Rs. 20,000

Page No 4.104:

Question 111:

Current Assets  =  Debtors + Stock + Cash
   =  10,000 + 15,000 + 15,000
   =  Rs. 40,000
 
Current Liabilities  =  Bills Payables + Creditors
   =  6,000 + 14,000
   =  Rs. 20,000

Answer:

(A)


(B)

(C)

Page No 4.104:

Question 112:

(A)


(B)

(C)

Answer:

(A)


(B)
(C)

(D)

(E)



Page No 4.105:

Question 113:

(A)


(B)
(C)

(D)

(E)

Answer:

(A)

(B)
(C)
(D)



Page No 4.106:

Question 114:

(A)

(B)
(C)
(D)

Answer:

(A)


(B)

(C)

Page No 4.106:

Question 115:

(A)


(B)

(C)

Answer:

(A)

(B)
(C)
(D)
(E)



Page No 4.107:

Question 116:

(A)

(B)
(C)
(D)
(E)

Answer:

(A)


(B)

(C)



Page No 4.85:

Question 1:

(A)


(B)

(C)

Answer:

​Current Ratio = Current AssetsCurrent Liabilities

 

 Current Assets  =  Debtors + Prepaid Expenses + Cash + Marketable Securities + Inventory
  =  2, 00,000 + 20,000 + 60,000 + 40,000 + 80,000
  =  Rs 4, 00,000
 
​Current Liabilities  =  Bills Payables + Creditors + Expenses Payables
  =  40,000 + 80,000 + 80,000
  =  Rs 2, 00,000 

Current Ratio = Current AssetsCurrent Liabilities=2: 1



Page No 4.86:

Question 2:

​Current Ratio = Current AssetsCurrent Liabilities

 

 Current Assets  =  Debtors + Prepaid Expenses + Cash + Marketable Securities + Inventory
  =  2, 00,000 + 20,000 + 60,000 + 40,000 + 80,000
  =  Rs 4, 00,000
 
​Current Liabilities  =  Bills Payables + Creditors + Expenses Payables
  =  40,000 + 80,000 + 80,000
  =  Rs 2, 00,000 

Current Ratio = Current AssetsCurrent Liabilities=2: 1

Answer:

Current Liabilities  =  Creditors + Other Current Liabilities
   =  80,000 + 4, 00,000
   =  Rs 4, 80,000
 
Working Capital  =  Current Assets – Current Liabilities
7, 00,000  =  Current Assets – 4, 80,000
Current Assets  =  Rs 11, 80,000

Current Ratio=Current AssetsCurrent Liabilities=11,80,0004,80,000=2.458: 1

Page No 4.86:

Question 3:

Current Liabilities  =  Creditors + Other Current Liabilities
   =  80,000 + 4, 00,000
   =  Rs 4, 80,000
 
Working Capital  =  Current Assets – Current Liabilities
7, 00,000  =  Current Assets – 4, 80,000
Current Assets  =  Rs 11, 80,000

Current Ratio=Current AssetsCurrent Liabilities=11,80,0004,80,000=2.458: 1

Answer:

Current Liabilities  =  Total Debt – Long Term Debts
   =  6, 50,000 – 5, 00, 000
   =  Rs. 1, 50,000
 
Working Capital  =  Current Assets – Current Liabilities
3, 00,000  =  Current Assets – 1, 50,000
Current Assets  =  Rs. 4, 50,000.

Current Ratio=Current AssetsCurrent Liabilities=4,50,0001,50,000=3: 1

Page No 4.86:

Question 4:

Current Liabilities  =  Total Debt – Long Term Debts
   =  6, 50,000 – 5, 00, 000
   =  Rs. 1, 50,000
 
Working Capital  =  Current Assets – Current Liabilities
3, 00,000  =  Current Assets – 1, 50,000
Current Assets  =  Rs. 4, 50,000.

Current Ratio=Current AssetsCurrent Liabilities=4,50,0001,50,000=3: 1

Answer:

Working Capital  =  Current Asset* – Current Liabilities
5, 00,000  =  6, 00,000   – Current Liabilities
Current Liabilities  =  Rs. 1, 00,000
 
(Current Asset*  =  Current Assets- Loose tools – Stores & Spares
   =  8, 00,000 – 15, 00,000 -50,000
   =  6, 00,000)

Current Ratio=Current AssetsCurrent Liabilities=6,00,0001,00,000=6: 1

Page No 4.86:

Question 5:

Working Capital  =  Current Asset* – Current Liabilities
5, 00,000  =  6, 00,000   – Current Liabilities
Current Liabilities  =  Rs. 1, 00,000
 
(Current Asset*  =  Current Assets- Loose tools – Stores & Spares
   =  8, 00,000 – 15, 00,000 -50,000
   =  6, 00,000)

Current Ratio=Current AssetsCurrent Liabilities=6,00,0001,00,000=6: 1

Answer:

Current Ratio=Current AssetsCurrent Liabilities=4,50,000+50,0002,00,000+50,000= 2: 1After Purchase

Page No 4.86:

Question 6:

Current Ratio=Current AssetsCurrent Liabilities=4,50,000+50,0002,00,000+50,000= 2: 1After Purchase

Answer:

Let’s take Current Asset = Rs. 2, 50,000 and Current Liability = Rs. 1, 00,000
 

a. Payment to Creditors say Rs 50,000, So
 
Current Ratio=2,50,000-50,0001,00,000-50,000=4: 1 Improve
 
b. Sale of Machinery Say Rs. 50,000, So
 
Current Ratio=2,50,000+50,0001,00,000=3: 1 Improve
 
c. Purchase of Goods for Cash Say Rs. 50,000, So
 
Current Ratio=2,50,000+50,000-50,0001,00,000=2: 5: 1 No Change
 
d. Issue of Equity Shares Say Rs. 50,000
 
=2,50,000+50,0001,00,000=3: 1 Improve

Page No 4.86:

Question 7:

Let’s take Current Asset = Rs. 2, 50,000 and Current Liability = Rs. 1, 00,000
 

a. Payment to Creditors say Rs 50,000, So
 
Current Ratio=2,50,000-50,0001,00,000-50,000=4: 1 Improve
 
b. Sale of Machinery Say Rs. 50,000, So
 
Current Ratio=2,50,000+50,0001,00,000=3: 1 Improve
 
c. Purchase of Goods for Cash Say Rs. 50,000, So
 
Current Ratio=2,50,000+50,000-50,0001,00,000=2: 5: 1 No Change
 
d. Issue of Equity Shares Say Rs. 50,000
 
=2,50,000+50,0001,00,000=3: 1 Improve

Answer:

Current Ratio=Current AssetsCurrent Liabilities=48,00024,000=2: 1
 

Current Assets  =  Inventories + Trade Receivables + Cash
  =  18,600 + 9,600 +19,800
  =  Rs 48,000
 
Current Liabilities  =  Bank Overdraft+ Trade Payables
  =  6,000 + 18,000
  =  Rs 24,000
Note: The answer provided in the book is 1 : 1, however, as per our solution the current ratio is 2 : 1.

Page No 4.86:

Question 8:

Current Ratio=Current AssetsCurrent Liabilities=48,00024,000=2: 1
 

Current Assets  =  Inventories + Trade Receivables + Cash
  =  18,600 + 9,600 +19,800
  =  Rs 48,000
 
Current Liabilities  =  Bank Overdraft+ Trade Payables
  =  6,000 + 18,000
  =  Rs 24,000
Note: The answer provided in the book is 1 : 1, however, as per our solution the current ratio is 2 : 1.

Answer:

Liquidity Ratio=Current Assets-Stock-Prepaid ExpensesCurrent Liability=2,40,000-75,000-15,0001,50,000=1,50,0001,50,000=1: 1

Page No 4.86:

Question 9:

Liquidity Ratio=Current Assets-Stock-Prepaid ExpensesCurrent Liability=2,40,000-75,000-15,0001,50,000=1,50,0001,50,000=1: 1

Answer:

Current Assets  =  Liquid Assets + Stock + Prepaid Expenses
   =  1, 87,500 + 50,000 + 12,500
   =  Rs 2, 50,000
 
Working Capital  =  Current Assets – Current Liabilities
1, 50,000  =  2, 50,000 –Current Liabilities
Current Liabilities  =  Rs 1, 00,000

Current Ratio=Current AssetsCurrent Liabilities=2,50,0001,00,000=2.5: 1

Page No 4.86:

Question 10:

Current Assets  =  Liquid Assets + Stock + Prepaid Expenses
   =  1, 87,500 + 50,000 + 12,500
   =  Rs 2, 50,000
 
Working Capital  =  Current Assets – Current Liabilities
1, 50,000  =  2, 50,000 –Current Liabilities
Current Liabilities  =  Rs 1, 00,000

Current Ratio=Current AssetsCurrent Liabilities=2,50,0001,00,000=2.5: 1

Answer:

Working Capital  =  Current Assets – Current Liabilities
5, 00,000  =  10, 00,000 –Current Liabilities
Current Liabilities =  Rs 5, 00,000


Liquidity Ratio=Current Ratio-Inventory (Stock)Current Liability-Bank Overdraft                          =10,00,000-2,00,0005,00,000-1,00,000=8,00,0004,00,000                           =2:1

Page No 4.86:

Question 11:

Working Capital  =  Current Assets – Current Liabilities
5, 00,000  =  10, 00,000 –Current Liabilities
Current Liabilities =  Rs 5, 00,000


Liquidity Ratio=Current Ratio-Inventory (Stock)Current Liability-Bank Overdraft                          =10,00,000-2,00,0005,00,000-1,00,000=8,00,0004,00,000                           =2:1

Answer:

Current Liabilities  =  Total Debt – Long Term Borrowings
   =  4, 90,000 – 4, 00, 000
   =  Rs. 90,000
 
Working Capital  =  Current Assets – Current Liabilities
5, 10,000  =  Current Assets – 90,000
Current Assets  =  Rs 6, 00,000
 
Quick Liabilities  =  Current Liabilities – Bank Overdraft
   =  90,000 – 10, 000
   =  Rs. 80,000
 
Quick Assets  =  Current Assets – Investory – Prepaid Expenses
   =  6,00,000 – 75,000 – 25,000
   =  Rs 5, 00,000

Page No 4.86:

Question 12:

Current Liabilities  =  Total Debt – Long Term Borrowings
   =  4, 90,000 – 4, 00, 000
   =  Rs. 90,000
 
Working Capital  =  Current Assets – Current Liabilities
5, 10,000  =  Current Assets – 90,000
Current Assets  =  Rs 6, 00,000
 
Quick Liabilities  =  Current Liabilities – Bank Overdraft
   =  90,000 – 10, 000
   =  Rs. 80,000
 
Quick Assets  =  Current Assets – Investory – Prepaid Expenses
   =  6,00,000 – 75,000 – 25,000
   =  Rs 5, 00,000

Answer:



Page No 4.86:

Question 13:



Answer:



Page No 4.86:

Question 14:



Answer:



Page No 4.86:

Question 15:



Answer:

Liquidity Ratio=Current Assets - Stock Current Liability  2=Current Assets  - 50,0001,25,000   2,50,000=Current Assets - 50,000Current Assets=3,00,000

Current Ratio=Current AssetsCurrent Liabilities=3,00,0001,25,000=2.4: 1

* Current Liabilities remains same as Quick liabilities, if there is no bank overdraft.



Page No 4.87:

Question 16:

Liquidity Ratio=Current Assets - Stock Current Liability  2=Current Assets  - 50,0001,25,000   2,50,000=Current Assets - 50,000Current Assets=3,00,000

Current Ratio=Current AssetsCurrent Liabilities=3,00,0001,25,000=2.4: 1

* Current Liabilities remains same as Quick liabilities, if there is no bank overdraft.

Answer:

Page No 4.87:

Question 17:

Answer:

 Working Capital  =  Current Assets – Current Liabilities
84,000  =  1, 00,000 – Current Liabilities
Current Liabilities  =  Rs 16,000

Page No 4.87:

Question 18:

 Working Capital  =  Current Assets – Current Liabilities
84,000  =  1, 00,000 – Current Liabilities
Current Liabilities  =  Rs 16,000

Answer:


 

Working Capital  =  Current Assets – Current Liabilities
2, 40,000   =  2.5Current Liabilities - Current Liabilities
Current Liabilities  =  Rs 1, 60,000
Current Assets  =  2.5  1, 60,000 = Rs 4, 00,000

Page No 4.87:

Question 19:


 

Working Capital  =  Current Assets – Current Liabilities
2, 40,000   =  2.5Current Liabilities - Current Liabilities
Current Liabilities  =  Rs 1, 60,000
Current Assets  =  2.5  1, 60,000 = Rs 4, 00,000

Answer:

Current Assets  =  Inventories + Trade Receivables + Cash + Advance Tax
   =  1, 00,000 + 1, 00,000 + 60,000 +8,000
   =  Rs 2, 68,000
 
Current Liabilities  =  Trade Payables + Bank Overdraft
   =  2, 00,000 + 8,000
   =  Rs 2, 08,000



Page No 4.87:

Question 20:

Current Assets  =  Inventories + Trade Receivables + Cash + Advance Tax
   =  1, 00,000 + 1, 00,000 + 60,000 +8,000
   =  Rs 2, 68,000
 
Current Liabilities  =  Trade Payables + Bank Overdraft
   =  2, 00,000 + 8,000
   =  Rs 2, 08,000



Answer:

Current Assets  =  Inventories + Prepaid Expenses + Other Current Assets
   =  30,000 + 2000 + 50,000
   =  Rs 82,000



Page No 4.87:

Question 21:

Current Assets  =  Inventories + Prepaid Expenses + Other Current Assets
   =  30,000 + 2000 + 50,000
   =  Rs 82,000



Answer:

(i) Current Ratio=Current AssetsCurrent Liabilitiesor, Current Ratio=48,00048,000or, Current Ratio=1: 1
 

Current Assets  =  Inventories + Trade Receivables + Cash + Prepaid Expenses
  =  24,000 + 18,000 +4,560 + 1,440
  =  Rs 48,000
 
Current Liabilities  =  Bank Overdraft+ Trade Payables + Short term provision
  =  10,000 + 36,800 + 1,200
  =  Rs 48,000  

(ii) Liquid Ratio=Current Assets-Stock-Prepaid ExpensesCurrent Liability-Over draftor, Liquid Ratio=48,000-24,000-1,44048,000-10,000or, Liquid Ratio=22,56038,000=0.59: 1



Page No 4.88:

Question 22:

(i) Current Ratio=Current AssetsCurrent Liabilitiesor, Current Ratio=48,00048,000or, Current Ratio=1: 1
 

Current Assets  =  Inventories + Trade Receivables + Cash + Prepaid Expenses
  =  24,000 + 18,000 +4,560 + 1,440
  =  Rs 48,000
 
Current Liabilities  =  Bank Overdraft+ Trade Payables + Short term provision
  =  10,000 + 36,800 + 1,200
  =  Rs 48,000  

(ii) Liquid Ratio=Current Assets-Stock-Prepaid ExpensesCurrent Liability-Over draftor, Liquid Ratio=48,000-24,000-1,44048,000-10,000or, Liquid Ratio=22,56038,000=0.59: 1

Answer:

Debt Equity Ratio=DebtEquity
 

Equity  =  Share Capital + Reserve and Surplus
   =  5, 00,000 + 2, 00,000 + 3, 00,000
   =  Rs 10, 00,000
 
Debt  =  Long Term Borrowings + Long Term Provision
   =  7, 00,000 + 50,000
   =  Rs 7, 50,000
   =  7,50,00010,00,000
   = 0.75:1

Page No 4.88:

Question 23:

Debt Equity Ratio=DebtEquity
 

Equity  =  Share Capital + Reserve and Surplus
   =  5, 00,000 + 2, 00,000 + 3, 00,000
   =  Rs 10, 00,000
 
Debt  =  Long Term Borrowings + Long Term Provision
   =  7, 00,000 + 50,000
   =  Rs 7, 50,000
   =  7,50,00010,00,000
   = 0.75:1

Answer:

Debt  =  Total Debt – Current Liabilities
   =  1, 80,000 – 20,000
   =  Rs. 1, 60,000
 
Equity =  Total Assets – Current Liabilities – Non Current Liabilities
   =  2, 60,000 – 20,000 – 1, 60,000
   =  Rs. 80,000

Debt Equity Ratio=DebtEquity=1, 60, 00080, 000=2: 1

Page No 4.88:

Question 24:

Debt  =  Total Debt – Current Liabilities
   =  1, 80,000 – 20,000
   =  Rs. 1, 60,000
 
Equity =  Total Assets – Current Liabilities – Non Current Liabilities
   =  2, 60,000 – 20,000 – 1, 60,000
   =  Rs. 80,000

Debt Equity Ratio=DebtEquity=1, 60, 00080, 000=2: 1

Answer:

Debt Equity Ratio=DebtEquity
 

Debt  =  Long Term Borrowings + Long Term Provision
   =   14, 00,000 + 1, 00,000
   =  Rs 15, 00,000
 
Equity  =  Share Capital + Reserve and Surplus
   =  8, 00,000 + 2, 00,000
   =  Rs 10, 00,000
   =  15,00,00010,00,000
   =  1.5: 1

Page No 4.88:

Question 25:

Debt Equity Ratio=DebtEquity
 

Debt  =  Long Term Borrowings + Long Term Provision
   =   14, 00,000 + 1, 00,000
   =  Rs 15, 00,000
 
Equity  =  Share Capital + Reserve and Surplus
   =  8, 00,000 + 2, 00,000
   =  Rs 10, 00,000
   =  15,00,00010,00,000
   =  1.5: 1

Answer:

Let’s take Debt = Rs. 50,000 and Equity = Rs. 1, 00,000

1. Issue of Shares say Rs 20,000, So


2. Cash received from Debtors Say Rs. 20,000, So

3. Redemption of Debentures Say Rs. 20,000, So

4. Purchase goods on credit sale Say Rs. 20,000 

Page No 4.88:

Question 26:

Let’s take Debt = Rs. 50,000 and Equity = Rs. 1, 00,000

1. Issue of Shares say Rs 20,000, So


2. Cash received from Debtors Say Rs. 20,000, So

3. Redemption of Debentures Say Rs. 20,000, So

4. Purchase goods on credit sale Say Rs. 20,000 

Answer:

Debt Equity Ratio=DebtEquity
 

Debt =  Long Term Borrowings + Long Term Provision
  =  Rs 4, 50,000 
 
Equity  =  Share Capital + Reserve and Surplus
   =  2, 50,000 + 50,000
   =  Rs 3, 00,000
  =  4,50,0003,00,000
  =  1.5: 1



Page No 4.89:

Question 27:

Debt Equity Ratio=DebtEquity
 

Debt =  Long Term Borrowings + Long Term Provision
  =  Rs 4, 50,000 
 
Equity  =  Share Capital + Reserve and Surplus
   =  2, 50,000 + 50,000
   =  Rs 3, 00,000
  =  4,50,0003,00,000
  =  1.5: 1

Answer:

Debt Equity Ratio=DebtEquity
 

Debt  =  Long Term Borrowings + Long Term Provision
   =  2,00,000 + 50,000
   =  Rs 2,50,000 
 
Equity  =  Share Capital + Reserve and Surplus
   =  6, 00,000 – 1, 00,000
   =  Rs 5,00,000
  = 2,50,0005,00,000
  =  0.5: 1

Page No 4.89:

Question 28:

Debt Equity Ratio=DebtEquity
 

Debt  =  Long Term Borrowings + Long Term Provision
   =  2,00,000 + 50,000
   =  Rs 2,50,000 
 
Equity  =  Share Capital + Reserve and Surplus
   =  6, 00,000 – 1, 00,000
   =  Rs 5,00,000
  = 2,50,0005,00,000
  =  0.5: 1

Answer:


 

Shareholder’s Fund  =  Share Capital + Reserve and Surplus
   =  4, 50,000 + 75,000
   =  Rs. 5, 25,000
   =  5,25,0007,50,000
   =  0.7: 1



Page No 4.90:

Question 29:


 

Shareholder’s Fund  =  Share Capital + Reserve and Surplus
   =  4, 50,000 + 75,000
   =  Rs. 5, 25,000
   =  5,25,0007,50,000
   =  0.7: 1

Answer:

Debt  =  Long Term Borrowings + Long Term Provision
   =  8, 00,000 + 2, 00,000
   =  Rs 10, 00,000

Page No 4.90:

Question 30:

Debt  =  Long Term Borrowings + Long Term Provision
   =  8, 00,000 + 2, 00,000
   =  Rs 10, 00,000

Answer:

Debt  =  Total Debt + Short Term Borrowings – Other Current Liabilities
   =  20, 00,000 - 4, 00,000 -4, 00, 000
  =  Rs 12, 00,000 

Total Assets = Total Liabilities = 24, 00,000 + 20, 00,000 = Rs. 44, 00,000

Page No 4.90:

Question 31:

Debt  =  Total Debt + Short Term Borrowings – Other Current Liabilities
   =  20, 00,000 - 4, 00,000 -4, 00, 000
  =  Rs 12, 00,000 

Total Assets = Total Liabilities = 24, 00,000 + 20, 00,000 = Rs. 44, 00,000

Answer:


 

Capital Employed  =   Shareholders' Fund + Long-Term Debts - Investment (Non-Trade)
14,50,000  = 10,00,000 (7,50,000 + 2,50,000) + Long-Term Debts - 1, 00,000
Long-Term Debts  =  Rs.  5,50,000
 
Total Assets  =  Fixed Assets + Trade Receivables + Investment + Cash
   =  6, 50,000 + 6, 00,000 + 1, 00,000 + 3, 00,000
   =  Rs. 16, 50,000

Page No 4.90:

Question 32:


 

Capital Employed  =   Shareholders' Fund + Long-Term Debts - Investment (Non-Trade)
14,50,000  = 10,00,000 (7,50,000 + 2,50,000) + Long-Term Debts - 1, 00,000
Long-Term Debts  =  Rs.  5,50,000
 
Total Assets  =  Fixed Assets + Trade Receivables + Investment + Cash
   =  6, 50,000 + 6, 00,000 + 1, 00,000 + 3, 00,000
   =  Rs. 16, 50,000

Answer:

Debt  =  Total Debt - Current Liabilities
   =  15, 00,000 – (4, 00,000 + 50, 000 + 10,000 + 1, 00,000)
   =  15, 00,000 - 5, 60,000
   =  Rs 9, 40,000

Page No 4.90:

Question 33:

Debt  =  Total Debt - Current Liabilities
   =  15, 00,000 – (4, 00,000 + 50, 000 + 10,000 + 1, 00,000)
   =  15, 00,000 - 5, 60,000
   =  Rs 9, 40,000

Answer:



Page No 4.91:

Question 34:

Answer:


 

Shareholder’s Fund  =  Share Capital + Reserve and Surplus
  =  7, 00,000 + 2, 50,000 + 3, 00,000 + 2, 50,000
  =  Rs. 15, 00,000
 
Total Assets  =  Fixed Assets + Investment + Current Assets
  =  35, 00,000 + 2, 00,000 + 8, 00,000
  =  Rs. 45, 00,000
  =  15,00,00045,00,000
  =  0.33: 1


 
Debt  =  Long Term Borrowings + Long Term Provision
  =  20, 00,000 + 5, 00,000
  =  Rs.25, 00,000

Page No 4.91:

Question 35:


 

Shareholder’s Fund  =  Share Capital + Reserve and Surplus
  =  7, 00,000 + 2, 50,000 + 3, 00,000 + 2, 50,000
  =  Rs. 15, 00,000
 
Total Assets  =  Fixed Assets + Investment + Current Assets
  =  35, 00,000 + 2, 00,000 + 8, 00,000
  =  Rs. 45, 00,000
  =  15,00,00045,00,000
  =  0.33: 1


 
Debt  =  Long Term Borrowings + Long Term Provision
  =  20, 00,000 + 5, 00,000
  =  Rs.25, 00,000

Answer:

Shareholder’s Fund  =  Share Capital + Reserve and Surplus
   =  90,000 + 60,000 + 30,000 + 60,000
   =  Rs.2, 40,000
 
Total Assets  =  Fixed Assets + Investment + Current Assets
   =  6, 00,000 + 60,000 + 3, 00,000
   =  Rs. 9, 60,000
 
Debt  =  Long Term Borrowings + Long Term Provision
   =  Rs 4, 80,000 






Page No 4.91:

Question 36:

Shareholder’s Fund  =  Share Capital + Reserve and Surplus
   =  90,000 + 60,000 + 30,000 + 60,000
   =  Rs.2, 40,000
 
Total Assets  =  Fixed Assets + Investment + Current Assets
   =  6, 00,000 + 60,000 + 3, 00,000
   =  Rs. 9, 60,000
 
Debt  =  Long Term Borrowings + Long Term Provision
   =  Rs 4, 80,000 






Answer:

Shareholder’s Fund  =  Share Capital + Reserve and Surplus
   =  6, 00,000 + 1, 50,000
   =  Rs.7, 50,000
 
Debt  =  Long Term Borrowings + Long Term Provision
   =  Rs 1, 00,000 

 



Page No 4.92:

Question 37:

Shareholder’s Fund  =  Share Capital + Reserve and Surplus
   =  6, 00,000 + 1, 50,000
   =  Rs.7, 50,000
 
Debt  =  Long Term Borrowings + Long Term Provision
   =  Rs 1, 00,000 

 

Answer:

Page No 4.92:

Question 38:

Answer:

Profit before Interest & Tax  =  1, 70,000 + 30,000 + 40,000
  =  Rs 2, 40,000
 

Page No 4.92:

Question 39:

Profit before Interest & Tax  =  1, 70,000 + 30,000 + 40,000
  =  Rs 2, 40,000
 

Answer:

Profit before Interest & Tax  =  75,000 + 9,000 + 5,000 + 5,000 (Interest on Debenture)
   =  Rs 94,000

Page No 4.92:

Question 40:

Profit before Interest & Tax  =  75,000 + 9,000 + 5,000 + 5,000 (Interest on Debenture)
   =  Rs 94,000

Answer:

Interest Coverage Ratio = Profit before Interest and TaxInterest on Long-term DebtsInterest Coverage Ratio = 7,20,000*1,00,000 = 7.2 Times*Profit after Interest but before Tax =6,20,000Add: Interest                            =1,00,000 Profit before Interest and Tax       = Rs 7,20,000



Page No 4.93:

Question 41:

Interest Coverage Ratio = Profit before Interest and TaxInterest on Long-term DebtsInterest Coverage Ratio = 7,20,000*1,00,000 = 7.2 Times*Profit after Interest but before Tax =6,20,000Add: Interest                            =1,00,000 Profit before Interest and Tax       = Rs 7,20,000

Answer:

Page No 4.93:

Question 42:

Answer:

Page No 4.93:

Question 43:

Answer:

Page No 4.93:

Question 44:

Answer:

Page No 4.93:

Question 45:

Answer:

Page No 4.93:

Question 46:

Answer:

Cost of Goods Sold  =  Rs. 5,00,000
Gross Profit  =  5,00,000 × 20%
   =  Rs. 1,00,000
 
Sales  =  Cost of Goods Sold + Gross Profit
   =  5,00,000 + 1,00,000
   =  Rs. 6,00,000
 
Cash Sales  =  20% of 6,00,000 = Rs. 1,20,000
   =  6,00,000 – 1,20,000
   =  Rs. 4,80,000

Page No 4.93:

Question 47:

Cost of Goods Sold  =  Rs. 5,00,000
Gross Profit  =  5,00,000 × 20%
   =  Rs. 1,00,000
 
Sales  =  Cost of Goods Sold + Gross Profit
   =  5,00,000 + 1,00,000
   =  Rs. 6,00,000
 
Cash Sales  =  20% of 6,00,000 = Rs. 1,20,000
   =  6,00,000 – 1,20,000
   =  Rs. 4,80,000

Answer:

Page No 4.93:

Question 48:

Answer:


Page No 4.93:

Question 49:


Answer:



Page No 4.94:

Question 50:

Answer:

Page No 4.94:

Question 51:

Answer:

Page No 4.94:

Question 52:

Answer:

Page No 4.94:

Question 53:

Answer:

Working Capital Turnover Ratio = Revenue from OperationsWorking CapitalWorking Capital Turnover Ratio = 21,00,0003,50,000 = 6 TimesRevenue from Operations = Sales - Sales ReturnRevenue from Operations = 23,00,000 - 2,00,000 = Rs 21,00,000Working Capital = Current Assets - Current LiabilitiesWorking Capital = 6,00,000 - 2,50,000 = Rs 3,50,000Current Assets = Marketable Securities + Inventory + Sundry Debtors + Bills Receivable + Cash at Bank + Cash in HandCurrent Assets = 1,50,000 + 50,000 + 2,00,000 +50,000 +1,00,000 +50,000 = Rs 6,00,000Current Liabilities = Bills Payable + Sundry Creditors + Provision for TaxCurrent Liabilities = 30,000 +2,00,000 + 20,000 = Rs 2,50,000

Page No 4.94:

Question 54:

Working Capital Turnover Ratio = Revenue from OperationsWorking CapitalWorking Capital Turnover Ratio = 21,00,0003,50,000 = 6 TimesRevenue from Operations = Sales - Sales ReturnRevenue from Operations = 23,00,000 - 2,00,000 = Rs 21,00,000Working Capital = Current Assets - Current LiabilitiesWorking Capital = 6,00,000 - 2,50,000 = Rs 3,50,000Current Assets = Marketable Securities + Inventory + Sundry Debtors + Bills Receivable + Cash at Bank + Cash in HandCurrent Assets = 1,50,000 + 50,000 + 2,00,000 +50,000 +1,00,000 +50,000 = Rs 6,00,000Current Liabilities = Bills Payable + Sundry Creditors + Provision for TaxCurrent Liabilities = 30,000 +2,00,000 + 20,000 = Rs 2,50,000

Answer:



Page No 4.95:

Question 55:

Answer:

Page No 4.95:

Question 56:

Answer:

Page No 4.95:

Question 57:

Answer:

Page No 4.95:

Question 58:

Answer:

Page No 4.95:

Question 59:

Answer:

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Question 60:

Answer:

Page No 4.95:

Question 61:

Answer:



Page No 4.96:

Question 62:

Answer:

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Question 63:

Answer:

Page No 4.96:

Question 64:

Answer:

Page No 4.96:

Question 65:

Answer:

Page No 4.96:

Question 66:

Answer:

Page No 4.96:

Question 67:

Answer:



 



Page No 4.97:

Question 68:



 

Answer:

Page No 4.97:

Question 69:

Answer:

Page No 4.97:

Question 70:

Answer:

Page No 4.97:

Question 71:

Answer:



Page No 4.98:

Question 72:

Answer:

Page No 4.98:

Question 73:

Answer:


 

Current Assets  =  Inventory + Trade Receivables + Cash
   =  62,000 + 32,000 + 66,000
   =  Rs 1, 60,000
 
Current Liabilities  =  Bank Overdraft + Trade Payables
   =  20,000 + 60,000
   =  Rs 80,000

Page No 4.98:

Question 74:


 

Current Assets  =  Inventory + Trade Receivables + Cash
   =  62,000 + 32,000 + 66,000
   =  Rs 1, 60,000
 
Current Liabilities  =  Bank Overdraft + Trade Payables
   =  20,000 + 60,000
   =  Rs 80,000

Answer:

Page No 4.98:

Question 75:

Answer:

Page No 4.98:

Question 76:

Answer:

Page No 4.98:

Question 77:

Answer:

Page No 4.98:

Question 78:

Answer:

Page No 4.98:

Question 79:

Answer:



Page No 4.99:

Question 80:

Answer:

Page No 4.99:

Question 81:

Answer:

Let Debt to be Rs. 2, 00,000 and Equity = Rs. 1, 00,000

  a) Sale of Land book value Rs. 5,00,000, So

 
  
  b) Issue of Share for Purchase of Plant& Machinery Rs. 10,00,000, So
  

  c) Issue of Preference Shares for Payment of Redemption say Rs. 50,000, So
 

Page No 4.99:

Question 82:

Let Debt to be Rs. 2, 00,000 and Equity = Rs. 1, 00,000

  a) Sale of Land book value Rs. 5,00,000, So

 
  
  b) Issue of Share for Purchase of Plant& Machinery Rs. 10,00,000, So
  

  c) Issue of Preference Shares for Payment of Redemption say Rs. 50,000, So
 

Answer:

Debt  =  Total Debts – Current Liabilities
   =  10, 00,000 – 5, 00,000
   =  Rs. 5, 00,000
 
Equity  =  Total Assets – Current Liabilities – Total Debts
   =  12, 50,000 – 10,00,0000
   =  Rs. 2, 50,000

Page No 4.99:

Question 83:

Debt  =  Total Debts – Current Liabilities
   =  10, 00,000 – 5, 00,000
   =  Rs. 5, 00,000
 
Equity  =  Total Assets – Current Liabilities – Total Debts
   =  12, 50,000 – 10,00,0000
   =  Rs. 2, 50,000

Answer:

Debt  =  Long Term Borrowings + Long Term Provision
   =  1, 10,000 + 20,000
   =  Rs 1, 30,000
 
Equity  =  Share Capital + Reserve and Surplus
   =  5, 00,000 + 1, 00,000 + 40,000
   =  Rs 6, 40,000

Page No 4.99:

Question 84:

Debt  =  Long Term Borrowings + Long Term Provision
   =  1, 10,000 + 20,000
   =  Rs 1, 30,000
 
Equity  =  Share Capital + Reserve and Surplus
   =  5, 00,000 + 1, 00,000 + 40,000
   =  Rs 6, 40,000

Answer:


 

Debt  =  Long Term Borrowings + Long Term Provision
   =  2, 00,000 + 50,000
   =  Rs 2, 50,000
 
Equity  =  Share Capital + Reserve and Surplus
   =  10, 00,000 + 2, 40,000
   =  Rs 12, 40,000



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