Following information is given to you : Rs.Revenue from Operations4,40

1.	Following information is given to you : Rs.Revenue from Operations4,40,000Less: Purchases2,50,000 Changes in Inventories (Opening Inventory - Closing Inventory)(40,000 - 20,000)20,000 Direct Expenses30,000––––––––3,00,000–––––––––– Gross Profit1,40,000–––––––––– BALANCE SHEET as at 31st March, 2018 ParticulorsNoteRs. NoI.EQUITY AND LIABILITIES:Shareholder's Funds:(a) Share Capital3,00,000 (b) Reserve and Surplus11,00,000Current Liabilities :(a) Trade Payables1,50,000(b) Other Current Liabilities250,000TOTAL¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯6,00,000––––––––––II.ASSETS:Non-Current Assets4,00,000Current Assets:(a) Inventory20,000(b) Trade Receivable1,00,000(c) Cash & Cash Equivalents80,000TOTAL¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯6,00,00––––––––– Notes : (1) Reserve & Surplus : Profit & Loss Balance 1,00,000–––––––––– (2) Other Current Liabilities Outstanding Salary 50,000–––––––– On the basis of the informations given above, calculate any two of the following ratios : (i) Current Ratio, (ii) Inventory Turnover Ratio, and (iii) Proprietary Ratio.
Answer» Following information is given to you : $\begin{matrix} Rs. Revenue from Operations & 4, 40, 000 Less: Purchases & 2, 50, 000 Changes in Inventories (Opening Inventory - Closing Inventory)(40,000 - 20,000) & 20, 000 Direct Expenses & 30, 000 - ------ - & 3, 00, 000 - -------- - Gross Profit & 1, 40, 000 - -------- - \end{matrix}$ $\begin{matrix} BALANCE SHEET a s a t 31 s t M a r c h, 2018 \end{matrix} \begin{matrix} P a r t i c u l o r s & N o t e & Rs. N o I . & EQUITY AND LIABILITIES: Shareholder's Funds: (a) Share Capital & 3, 00, 000 (b) Reserve and Surplus & 1 & 1, 00, 000 Current Liabilities : (a) Trade Payables & 1, 50, 000 (b) Other Current Liabilities & 2 & 50, 000 TOTAL & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 6, 00, 000 - -------- - II . & ASSETS : Non-Current Assets & 4, 00, 000 Current Assets : (a) Inventory & 20, 000 (b) Trade Receivable & 1, 00, 000 (c) Cash & Cash Equivalents & 80, 000 TOTAL & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 6, 00, 00 - ------- - \end{matrix}$ Notes : (1) Reserve & Surplus : Profit & Loss Balance $1, 00, 000 - -------- -$ (2) Other Current Liabilities Outstanding Salary $50, 000 - ------ -$ On the basis of the informations given above, calculate any two of the following ratios : (i) Current Ratio, (ii) Inventory Turnover Ratio, and (iii) Proprietary Ratio.

Following information is given to you : Rs.Revenue from Operations4,40,000Less: Purchases2,50,000 Changes in Inventories (Opening Inventory - Closing Inventory)(40,000 - 20,000)20,000 Direct Expenses30,000––––––––3,00,000–––––––––– Gross Profit1,40,000–––––––––– BALANCE SHEET as at 31st March, 2018 ParticulorsNoteRs. NoI.EQUITY AND LIABILITIES:Shareholder's Funds:(a) Share Capital3,00,000 (b) Reserve and Surplus11,00,000Current Liabilities :(a) Trade Payables1,50,000(b) Other Current Liabilities250,000TOTAL¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯6,00,000––––––––––II.ASSETS:Non-Current Assets4,00,000Current Assets:(a) Inventory20,000(b) Trade Receivable1,00,000(c) Cash & Cash Equivalents80,000TOTAL¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯6,00,00––––––––– Notes : (1) Reserve & Surplus : Profit & Loss Balance 1,00,000–––––––––– (2) Other Current Liabilities Outstanding Salary 50,000–––––––– On the basis of the informations given above, calculate any two of the following ratios : (i) Current Ratio, (ii) Inventory Turnover Ratio, and (iii) Proprietary Ratio.

Answer»

Following information is given to you :

$\begin{matrix} Rs. Revenue from Operations & 4, 40, 000 Less: Purchases & 2, 50, 000 Changes in Inventories (Opening Inventory - Closing Inventory)(40,000 - 20,000) & 20, 000 Direct Expenses & 30, 000 - ------ - & 3, 00, 000 - -------- - Gross Profit & 1, 40, 000 - -------- - \end{matrix}$

$\begin{matrix} BALANCE SHEET a s a t 31 s t M a r c h, 2018 \end{matrix} \begin{matrix} P a r t i c u l o r s & N o t e & Rs. N o I . & EQUITY AND LIABILITIES: Shareholder's Funds: (a) Share Capital & 3, 00, 000 (b) Reserve and Surplus & 1 & 1, 00, 000 Current Liabilities : (a) Trade Payables & 1, 50, 000 (b) Other Current Liabilities & 2 & 50, 000 TOTAL & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 6, 00, 000 - -------- - II . & ASSETS : Non-Current Assets & 4, 00, 000 Current Assets : (a) Inventory & 20, 000 (b) Trade Receivable & 1, 00, 000 (c) Cash & Cash Equivalents & 80, 000 TOTAL & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 6, 00, 00 - ------- - \end{matrix}$

Notes : (1) Reserve & Surplus :

Profit & Loss Balance $1, 00, 000 - -------- -$

(2) Other Current Liabilities

Outstanding Salary $50, 000 - ------ -$

On the basis of the informations given above, calculate any two of the following ratios :

(i) Current Ratio,

(ii) Inventory Turnover Ratio, and

(iii) Proprietary Ratio.

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