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 Meritnation’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.

#### 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

#### Answer:

 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

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#### 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

#### 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

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#### 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

#### 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

#### 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.

#### 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)

#### 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

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

#### Answer:

 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:

 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

#### Answer:

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

#### 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

#### Answer:

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

#### Answer:

 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

#### 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

#### Answer:

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

#### Answer:

 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

#### Answer:

 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

#### 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

#### Answer:

 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

#### 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

#### Answer:

 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

#### Answer:

 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

#### Answer:

 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

#### Answer:

 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

#### 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

#### 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

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

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

#### 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

#### 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

#### Answer:

 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

#### 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

#### 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

#### 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

#### 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

#### 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

#### 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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