Management Accounting Ts Grewal 2016 Solutions for Class 12 Commerce Accountancy Chapter 3 Ratio Analysis are provided here with simple step-by-step explanations. These solutions for Ratio Analysis are extremely popular among Class 12 Commerce students for Accountancy Ratio Analysis Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Management Accounting Ts Grewal 2016 Book of Class 12 Commerce Accountancy Chapter 3 are provided here for you for free. You will also love the ad-free experience on Meritnationâ€™s Management Accounting Ts Grewal 2016 Solutions. All Management Accounting Ts Grewal 2016 Solutions for class Class 12 Commerce Accountancy are prepared by experts and are 100% accurate.

#### Page No 4.100:

 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:

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

#### Page No 4.101:

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

(A)

(B)

(A)

(B)

#### Page No 4.103:

 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 4.104:

 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

(A)

(B)

(C)

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(B)
(C)

(D)

(E)

(A)

(B)
(C)
(D)

(A)

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(C)

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(D)
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#### Page No 4.85:

â€‹

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

 â€‹Current Liabilities = Bills Payables + Creditors + Expenses Payables = 40,000 + 80,000 + 80,000 = Rs 2, 00,000

#### Page No 4.86:

 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

#### Page No 4.86:

 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.

#### Page No 4.86:

 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)

#### Page No 4.86:

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

b. Sale of Machinery Say Rs. 50,000, So

c. Purchase of Goods for Cash Say Rs. 50,000, So

d. Issue of Equity Shares Say Rs. 50,000

#### Page No 4.86:

 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:

 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

#### Page No 4.86:

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

#### Page No 4.86:

 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:

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

#### Page No 4.87:

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

#### Page No 4.87:

 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:

 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:

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

#### Page No 4.87:

 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

#### Page No 4.88:

 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 = $\frac{7,50,000}{10,00,000}$ = 0.75:1

#### Page No 4.88:

 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

#### Page No 4.88:

 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 = $\frac{15,00,000}{10,00,000}$ = 1.5: 1

#### Page No 4.88:

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:

 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 = $\frac{4,50,000}{3,00,000}$ = 1.5: 1

#### Page No 4.89:

 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 = $\frac{2,50,000}{5,00,000}$ = 0.5: 1

#### Page No 4.89:

 Shareholder’s Fund = Share Capital + Reserve and Surplus = 4, 50,000 + 75,000 = Rs. 5, 25,000 = $\frac{5,25,000}{7,50,000}$ = 0.7: 1

#### Page No 4.90:

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

#### Page No 4.90:

 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:

 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:

 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 4.91:

 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 = $\frac{15,00,000}{45,00,000}$ = 0.33: 1

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

#### Page No 4.91:

 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:

 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:

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

#### Page No 4.92:

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

#### Page No 4.93:

 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 4.98:

 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 4.99:

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:

 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:

 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