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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

Q.22. Opening Inventory Rs. 1,20,000; Closing Inventory 1.5 times of opening inventory; Inventory

Turnover Ratio 6 times; Selling price 33$\frac{1}{3}$% above cost. Calculate the Gross Profit ratio.

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.

1. buyback of its own shares by a company.

2. issue of bonus shares

3. purchase of fixed asset on long term deferred payment basis

4. sale of a fixed asset costing 200000 for 250000.

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

Why are preliminary expenses deducted , to calculate Shareholder's funds; while calculating Debt-equity ratio?

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?

equity share capital rupees 5,00,000

9% preference share capital rs 4,00,000

fixed assets rs 12,00,000

non current investments rs 1,50,000 reserves and surplus rupees 2,40,000 current assets rs 1,90,000

current liabilities rs 1,00,000

a) Purchased a fixed asset for Rs. 50,000 on long term deferred payment basis.

b) Declaration of final dividend.

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

[Ans. Profit Rs. 60,000.]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?

Working capital ?192000

Long term debt ?80000

Total debt ?200000

Working capital ?480000

Current assets ?600000

Inventory ?400000

Trade receivable ?150000

1. Current Ratio

2.Inventory Turnover Ratio

3.Working Capital

4.Working Capital Turnover

5.Cost of Goods Sold

Thank you in advance.

calculate gross profit ratio from the following :

credit revenue from operation were 1/4th of total revenue from operations.

credit revenue from operations were rs 1,20,000 .

credit purchases were 1/5th of cash purchases.

credit purchases were rs. 40,000.

opening inventory rs 70,000.

it was rs 20,000 more than closing inventory.

carriage rs 15,000

wages rs 45,000

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

Contribution12.02.412.627.0Less : 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?

cash sale 150000

credit sales 250000

return inward 25000

opening in inventory

25000 closing inventory 35000

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?

answers of v wason..........

of chapter accounting ratios

paid up capital 800000

current assets 500000

credit sales 300000

cash sales 75% credit sale

9% debentures 340000

cost of goods sold 680000

assests? Why? (Pg- 4.5)Analyse the performance of Rupa and Co. for the year ending March 31, 2015 and 2014 with the help of information given below by using accounting ratios:

March 31,2015 March 31,2014

â‚¹ â‚¹ 50,000 30,000 1,37,700 1,00,000

Revenue from operations. 75,00,000 60,00,000

Cost of revenue from operations. 57,00,000 45,00,000

Administrative & selling exp. 5,70,000 4,80,000

Depreciation on Plant & machinery 3,01,500 2,40,000

Depreciation on furniture

Share issue exp. written off 10,000 10,000

Interest on long term debts 96,000 80,000

Provision for Taxation

Particulars.

I. EQUITY AND LIABILITIES :

Shareholder's Funds:

Share Capital.

Reserve and Surplus

Non-Current Liabilities:

Long term borrowings

Current Liabilities:

Trade payables

Short term provision

II. ASSETS : 31,35,000 25,83,000 1,05,000 1,05,000 12,00,000 9,00,000 9,00,000 5,00,000 60,000 1,12,000 5. 10,000 10,000

TOTAL 54,30,000 42,40,000

Non-Current Assets:

Fixed Assets

Investments

Other Non Current Assets 4. 20,000 30,000

Current Assets:

Inventory

Trade Receivables

Cash & Cash Equivalents

Other Current Assets

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

Credit revenue from operation 300000

Cash revenue from operation 100000

Gross profit 25% on cost

Closing inventory was three time of the opening inventory

Opening inventory was 10% of cost of revenue from operations

what are ficticious assets???

While calculating proprietary ratio, should we deduct PRELIMINARY EXPENSES from shareholder's fund i.e, (share capital+reserves and surplus) ??

What are liquidity ratios? Discuss the importance of current and liquid ratio.

(a) Included in the trade payables was bill payable of Rs.3,000 which was met on maturity.

(b) Debentures of Rs.50,000 were converted into equity shares.

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....?

(a) Net Profit Ratio

(b)Operating Profit Ratio

Net Sales = 2,20,000

Gross Profit = 75,000

Office Expenses = 15,000

Selling Expenses = 26,000

Interest on Debentures = 5,000

Accidental Losses = 12,000

Income from rent = 2,500

Commission Received =2,000

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

2) What will the effect on present operating ratio of 80%, if there is payment of office and selling expenses of Rs. 5000?

3) What will be the effect on present debt-equity ratio of 2, if provision for interest accrued and due but not paid on debentures is made?

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)

calculate debt equity ratio

total assets:2,30,000

total debt:1,50,000

current liabilities:30,000

Total Revenue from operation Rs. 5,20,000, Cash Revenue from operation 60% of credit sales. Closing Trade Receivable Rs. 80,000 and opening Trade Receivable 3/4 of closing Trade Receivable.

21. A company,s Inventory Turnover Ratio is 5 times; Liquid Ratio of 1 and Current Ratio of 2. It had current Assests of Rs. 4,00,000. Find out the Revenue from operation if goods are sold at a profit of 25% above cost.

calculate operating profit ratio if operating ratio is 78%(Ans is 22 %) but how?

information cash sales 10,00,000 credit sales 120% of cash sales operating expenses 10% of total sales rate of gross profit 40% opening inventory 1,50,000 closing inventory 20,000 more than operating inventory current assests 3,00,000 current liabilities 6,00,000 share capital 5,00,000 fixed assets 5,00,000

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 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

Rs

Current Assets 22,00,000

Working Capital 13,00,000

Shareholder's Funds 15,00,000

Total Debt 39,00,000

Reserve and Surplus 5,00,000

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?

Calculate gross profit ratio:

Avg. stock = Rs. 15,000 ; stock turnover ratio = 5 times ; selling price = 125% of the cost.

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 the gross profit ratio when cash sales :25% of total sales ; purchase RS 276000 credit sales RS 240000; excess of closing stock over opening stock : RS 20000

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..!

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.

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

Please explain what are deferred tax assets and deferred tax liabilities in simple words?

Credit Sales. 5,00,000

Purchases. 3,00,000

Carriage Inwards. 10,000

Decrease in Inventory. 10,000

Returns Outwards 10,000

Wages. 50,000

Rate of credit sales to cash sales. 4:1

In ratios illustration 80 page 5.70 DK Goel. (2014 edition)

Operating income (commission ) is 2000 due to which operating profit ratio is 18%.

But in this question operating ratio = 83 % where cost = 125000 and other operating expense 41000 . Total expenses = 166,000

Operating ratio = cost + operating expenses / Net sales x 100

= 166,000 / 200,000 x 100 = 83 %.

SO operating ratio + operating profit ratio is not equal to 100.

This is just because operating income (commission) in not included anywhere while calculating operating ratio though it is added in calculating operating profit .

So what should be the correct approach in this question ?

CALCULATE GP RATIO.

OPENING STOCK=60,000

CLOSING STOCK=1,00,000

STOR=8 TIMES

SELLING PRICE 25% ABOVE COST.

Information:

(1.) Cash Revenue from Operations ~ 10,00,000.......

(2.) Credit Revenue from Operations ~ 120% of Cash Revenue from Operations........

(3.)Operating Expenses ~ 10% of Total Revenue from Operations........

(4.)Rate of Gross profit ~ 40%.

From the following, calculate working capital turnover ratio:

Sales= Rs. 76,800; Current assets = Rs. 62,400 ; Net profit = Rs. 3,60,000; current liabilities =Rs. 38,400 less than current assets; fixed assets = Rs. 60,000

Assuming that debt-equity ratio is 2:1. State giving reasons whether this ratio will increase or decrease or will have no change.

Ts grewal s6lutions

experts i wanna ur help in solving the following problems of accounting ratios of book T.S. GREWAL

a] 2 and 3 part of 21 question

b] 3 part of 22 question

c] 28 , 29 , 30, and 57 of practical problems.

state how personal bias get reflected in ratio analysis

what is the difference between NET PROFIT and and OPERATING NON PROFIT.?i am given a frmula that GP+OPERATING/NON OPERATIVE INCOME - OPERATING/NON OPERTING EXPENSES=OPERATIVE PROFIT/ OPERTAINGNETPROFITwhich means that therer is no difference between operating net profit and operating profit...and also the formula given regarding NET PROFIT=GP +OPERATING/NON OPERTING EXPENSES=OPERATIVE PROFIT/ OPERTAINGNETPROFITTHEN WHAT IS DIFFERENCE BETWEEN OPERATING PROFIT AND NET PROFIT?AND ALSO PLZ DO LIST THE FORMULAS OF GP, NP ,OPERATING PROFIT,OPERATING NET PROFIT,NET PROFIT....