The following is the summarised Profit and Loss Account and the Balanc

1.	The following is the summarised Profit and Loss Account and the Balance sheet of Nigam Limited for the year ended March 31, 2007 Profit and Loss Account for the year ended March 31, 2007 ParticularsAmt. (Rs.)ParticularAmt (Rs.)Opening Stock50,000Sales4,00,000Purchases2,00,000Closing Stock60,000Direct Expenses16,000Gross Profit1,94,000–––––––––– ––––––––––4,60,000––––––––––4,60,000––––––––––Salary48,000Gross Profit1,94,000Loss on Sale of Furniture6,000Net profit1,40,000–––––––––– ––––––6,00,000––––––––––6,00,000–––––––––– Balance Sheet of Nigam Limited as on March 31, 2007 Capital and LiabilitiesAmt. (Rs.)AssetsAmt. (Rs.)Profit and Loss1,40,000Stock60,000Creditors1,90,000Land4,00,000Equity Share Capital2,00,000Cash40,000Outstanding Expenses70,000Debtors1,00,000 ––––––––– ––––––––––6,00,000––––––––––6,00,000–––––––––– Calculate: (i) Quick Ratio (ii) Stock Turnover Ratio (iii) Return on Investment
Answer» The following is the summarised Profit and Loss Account and the Balance sheet of Nigam Limited for the year ended March 31, 2007 Profit and Loss Account for the year ended March 31, 2007 $\begin{matrix} Particulars & Amt. (Rs.) & Particular & Amt (Rs.) Opening Stock & 50, 000 & Sales & 4, 00, 000 Purchases & 2, 00, 000 & Closing Stock & 60, 000 Direct Expenses & 16, 000 Gross Profit & 1, 94, 000 - -------- - & - -------- - 4, 60, 000 - -------- - & 4, 60, 000 - -------- - Salary & 48, 000 & Gross Profit & 1, 94, 000 Loss on Sale of Furniture & 6, 000 Net profit & 1, 40, 000 - -------- - & - ---- - 6, 00, 000 - -------- - & 6, 00, 000 - -------- - \end{matrix}$ Balance Sheet of Nigam Limited as on March 31, 2007 $\begin{matrix} Capital and Liabilities & Amt. (Rs.) & Assets & Amt. (Rs.) Profit and Loss & 1, 40, 000 & Stock & 60, 000 Creditors & 1, 90, 000 & Land & 4, 00, 000 Equity Share Capital & 2, 00, 000 & Cash & 40, 000 Outstanding Expenses & 70, 000 & Debtors & 1, 00, 000 - ------- - & - -------- - 6, 00, 000 - -------- - & 6, 00, 000 - -------- - \end{matrix}$ Calculate: (i) Quick Ratio (ii) Stock Turnover Ratio (iii) Return on Investment

The following is the summarised Profit and Loss Account and the Balance sheet of Nigam Limited for the year ended March 31, 2007 Profit and Loss Account for the year ended March 31, 2007 ParticularsAmt. (Rs.)ParticularAmt (Rs.)Opening Stock50,000Sales4,00,000Purchases2,00,000Closing Stock60,000Direct Expenses16,000Gross Profit1,94,000–––––––––– ––––––––––4,60,000––––––––––4,60,000––––––––––Salary48,000Gross Profit1,94,000Loss on Sale of Furniture6,000Net profit1,40,000–––––––––– ––––––6,00,000––––––––––6,00,000–––––––––– Balance Sheet of Nigam Limited as on March 31, 2007 Capital and LiabilitiesAmt. (Rs.)AssetsAmt. (Rs.)Profit and Loss1,40,000Stock60,000Creditors1,90,000Land4,00,000Equity Share Capital2,00,000Cash40,000Outstanding Expenses70,000Debtors1,00,000 ––––––––– ––––––––––6,00,000––––––––––6,00,000–––––––––– Calculate: (i) Quick Ratio (ii) Stock Turnover Ratio (iii) Return on Investment

Answer» The following is the summarised Profit and Loss Account and the Balance sheet of Nigam Limited for the year ended March 31, 2007

Profit and Loss Account
for the year ended March 31, 2007
$\begin{matrix} Particulars & Amt. (Rs.) & Particular & Amt (Rs.) Opening Stock & 50, 000 & Sales & 4, 00, 000 Purchases & 2, 00, 000 & Closing Stock & 60, 000 Direct Expenses & 16, 000 Gross Profit & 1, 94, 000 - -------- - & - -------- - 4, 60, 000 - -------- - & 4, 60, 000 - -------- - Salary & 48, 000 & Gross Profit & 1, 94, 000 Loss on Sale of Furniture & 6, 000 Net profit & 1, 40, 000 - -------- - & - ---- - 6, 00, 000 - -------- - & 6, 00, 000 - -------- - \end{matrix}$

Balance Sheet of Nigam Limited
as on March 31, 2007

$\begin{matrix} Capital and Liabilities & Amt. (Rs.) & Assets & Amt. (Rs.) Profit and Loss & 1, 40, 000 & Stock & 60, 000 Creditors & 1, 90, 000 & Land & 4, 00, 000 Equity Share Capital & 2, 00, 000 & Cash & 40, 000 Outstanding Expenses & 70, 000 & Debtors & 1, 00, 000 - ------- - & - -------- - 6, 00, 000 - -------- - & 6, 00, 000 - -------- - \end{matrix}$

Calculate:
(i) Quick Ratio
(ii) Stock Turnover Ratio
(iii) Return on Investment

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