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M.22 An Aid to Accountancy—CBSE XII

x + x +12,000
` 90,000 =
2
` 1,80,000 = 2x + 12,000
2x = ` 1,68,000
x = ` 84,000
Hence, Opening Inventory = ` 84,000;
Closing Inventory = ` 96,000.
Working Note:
Calculation of Cost of Revenue from Operations:
Cost of Revenue from Operations = Revenue from Operations – Gross Profit
= ` 6,00,000 – ` 1,50,000 (i.e., 25% of ` 6,00,000) = ` 4,50,000.
(b)
Transactions Effect on Current Ratio Reason

(i) Improve Both Current Assets and Current Liabilities have decreased by the same
amount.
(ii) Reduce Both Current Assets and Current Liabilities have increased by the same
amount.
(iii) Improve Total Current Assets will increase by the sales proceeds but Current
Liabilities will remain unchanged.
(iv) Improve Total Current Assets will increase by the amount of Profit but Current
Liabilities will remain unchanged.
22. (a) Revenue from Operations, i.e., Net Sales.

(b) COMMON-SIZE BALANCE SHEET
as at 31st March, 2017 and 2018
Particulars Note No. Absolute Amounts Percentage of Balance Sheet Total
31st March, 31st March, 31st March, 31st March,
2017 (`) 2018 (`) 2017 (%) 2018 (%)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds 6,00,000 9,00,000 60 60
2. Non-Current Liabilities 3,00,000 3,00,000 30 20
3. Current Liabilities 1,00,000 3,00,000 10 20
Total 10,00,000 15,00,000 100 100
II. ASSETS
1. Non-Current Assets 7,00,000 10,50,000 70 70
2. Current Assets 3,00,000 4,50,000 30 30
Total 10,00,000 15,00,000 100 100
Or
(a) Tools of Financial Analysis:
1. Ratio Analysis.
2. Cash Flow Statement.