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M.486 An Aid to Accountancy—CBSE XII

x + x + ` 40,000 = ` 2,25,000

2x = ` 1,85,000
` 1,85,000
x = = ` 92,500 (Opening Inventory)
2
Closing Inventory = ` 92,500 + ` 40,000 = ` 1,32,500
Quick Assets
Quick Ratio =
Current Liabilities
Quick Assets
= = 0.75
` 80,000
Quick Assets = ` 80,000 × 0.75 = ` 60,000
Current Assets = Quick Assets + Inventory (Closing)
= ` 60,000 + ` 1,32,500 = ` 1,92,500.
22. 31st March, 31st March,
2017 2018
Debt ` 15,00,000 ` 16,50,000
Debt to Equity Ratio = = =
Equity ` 10,00,000 ` 13,00,000
= 1.5 : 1 = 1.27 : 1

Or
(a) The objective of computing Inventory Turnover Ratio is to determine the efficiency
with which the inventory is converted into Revenue from Operations.
(b) COMPARATIVE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March, 2017 and 2018
Particulars Note 31st March, 31st March, Absolute Change Percentage
No. 2017 2018 (Increase/ Change (Increase/
Decrease) Decrease)
` ` ` %
( C )
(A) (B) (C = B – A) D = A ¥100
I. Income
Revenue from Operations (Net Sales) 3,00,000 3,50,000 50,000 16.67
II. Expenses
(a) Purchases of Stock-in-Trade 1,80,000 2,10,000 30,000 16.67
(b) Change in Inventories of
Stock-in-Trade 20,000 15,000 (5,000) (25.00)
(c) Employees Benefit Expenses 15,000 17,500 2,500 16.67
(d) Other Expenses 5,000 7,500 2,500 50.00
Total Expenses 2,20,000 2,50,000 30,000 13.64
III. Profit before Tax (I – II) 80,000 1,00,000 20,000 25.00
IV. Less: Tax 24,000 30,000 6,000 25.00
V. Profit after Tax (III – IV) 56,000 70,000 14,000 25.00