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M.276 An Aid to Accountancy—CBSE XII

PART B
18. (b), (c) and (d).
19. Payment of Interest on Bank Overdraft.
20. (a) 1. Non-Current Assets; 2. Current Assets.
(b) Both Operating Profit Ratio and Operating Ratio are complementary to each other
and thus, if one of such ratio is deducted from 100 another ratio may be obtained.
These are calculated as follows:
Operating Profit
Operating Profit Ratio = ¥100 = ...%.
Revenue from Operations
Cost of Revenue from Operations + Operating Expenses
Operating Ratio = ¥ 100 = ...%.
Revenue from Operations
Revenue from Operations
21. (a) Working Capital Turnover Ratio =
Working Capital
` 4,00,000
= = 20 Times.
` 20,000
100
Revenue from Operations = ` 3,20,000 × = ` 4,00,000
80
Working Capital = Capital Employed – Non-current Assets
= ` 1,00,000 – ` 80,000 = ` 20,000.
Gross Profit
(b) Gross Profit Ratio = ¥ 100
Revenue from Operations
` 1,00,000
= ¥ 100 = 40%.
` 2,50,000
Gross Profit = Revenue from Operations – Cost of Revenue from Operations
(or) (Revenue + Closing Inventory) – (Opening Inventory +
Net Purchases + Wages)
= ` 2,90,000 – ` 1,90,000 = ` 1,00,000.
Or
(a) Let the closing Inventory be x
Opening Inventory = x + 2x = 3x
Cost of Revenue from Operations
Inventory Turnover Ratio =
Average Inventory
` 3,00,000
8 =
Ê x + 3x ˆ
Á Ë 2 ˜ ¯
16x = ` 3,00,000
x = ` 18,750 (Closing Inventory)
Thus, Opening Inventory = 3x = 3 × ` 18,750 = ` 56,250.