Worksheet -Accounting Ratios

Q:-1 A company had current assets ₹ 3,00,000 and current liabilities ₹ 1,40,000. Afterwards, it purchased goods
worth ₹ 20,000 on credit. Calculate the current ratio after the purchase of goods. (All India 2019)
Ans:- 2 : 1
Q:-2 X Ltd has a current ratio of 3 : 1 and quick ratio of 2 : 1. If the excess of current assets over quick assets as
represented by inventory is ₹ 40,000, calculate current assets and current liabilities. (All India 2012)
Ans:- Current Assets ₹ 1,20,000 , Current Liabilities = ₹ 40,000
Q:-3 On basis of the following information, calculate
(i) Debt equity ratio
(ii) Working capital turnover ratio. (Delhi 2011)

Information Amount
Revenue from Operations 60,00,000
Cost of revenue operations 45,00,000
Other current assets 11,00,000
Current liabilities 4,00,000
Paid-up share capital 6,00,000
6% debentures 3,00,000
9% loan 1,00,000
Debenture redemption reserve 2,00,000
Closing inventory 1,00,000
Ans- Debt Equity Ratio 1:2, Working Capital Turnover Ratio: - 7.5 Times
Q:-4 From the following information of Shiva Ltd, calculate total assets to debt ratio (All India 2019)

Information Amount
Equity Share Capital 5,00,000
9% Preference Share Capital 4,00,000
Fixed Assets 12,00,000
Non-current Investments 1,50,000
Reserves and Surplus 2,40,000
Current Assets 1,90,000
Current Liabilities 1,00,000
Ans:- 5.133 : 1
Q:-5 Y Ltd.’s profits after interest and tax was ₹ 1,00,000. Its current assets were ₹ 4,00,000 current liabilities ₹
2,00,000; fixed assets ₹ 6,00,000 and 10% long-term debt ₹ 4,00,000. The rate of tax was 20%. Calculate
‘Return on Investment of Y Ltd. (CBSE Comportment 2018)
Ans:- R.O.I (20.625%)
Q:-6 A company earn gross profit 25% on cost. For the year ended 31st March, 2017 its gross profit was
₹ 5,00,000; equity share capital of the company was ₹ 1,00,00,000; reserves and surplus ₹ 2,00,000; long-
term loan ₹ 3,00,000 and non-current assets were ₹ 10,00,000.
Compute the ‘working capital turnover ratio of the company. (Comportment 2018)
Ans: -5 Times
Q: -7 From the following details obtained from the financial statements of Jeev Ltd, calculate interest coverage ratio
Net profit after tax ₹ 1,20,000 12% long-term debt ₹ 20,00,000 Tax rate 40% (Delhi 2016)
Ans: - 1.83 Times
Q: -8 From the following information, calculate operating profit ratio.
Opening stock ₹ 10,000, purchases ₹ 1,20,000, revenue from operations ₹ 4,00,000, purchase returns
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 ₹ 5,000, returns from revenue from operations ₹ 15,000, selling expenses ₹ 70,000, administrative expenses
₹ 40,000, closing stock ₹ 60,000. (Delhi 2016)
Ans-54.55%
Q:-9 From the following information calculate operating ratio:-
Revenue from operations 7 6,80,000, rate of gross profit on cost 25%, selling expenses ₹ 1,44,000,
administrative expenses ₹ 73,000. (Delhi 2016)
Ans: - 111.91%
Q:-10 From the following, calculate ‘Trade receivables turnover ratio”.
Total revenue from operations for the year – ₹ 8,40,000
Cash revenue from operations – 40% of credit revenue from operations
Closing trade receivables – ₹ 2,00,000
Excess of closing trade receivables over opening trade receivables ₹ 80,000 A
Ans: - 3.75 Times
Q:-11 From the following information calculate ‘Interest coverage ratio’
Profit after interest and tax – ₹ 4,97,000
Rate of income tax – 30%
12% debentures – ₹ 6,00,000 (All India (C) 2016)
Ans: - 10.86 Times
Q:-12 With the help of the following information, calculate return on investment. Net profit after interest and tax ₹
6,00,000; 10% debentures ₹ 10,00,000; tax @ 40%; capital employed ₹ 80,00,000. (Delhi (C) 2015)
Ans: - 13.75%
Q:-13 From the following information compute ‘proprietary ratio’ (All India 2014)
Information Amount
Long-term Borrowings 2,00,000
Long-term Provisions 1,00,000
Current Liabilities 50,000
Current Liabilities 50,000
Non-current Assets 3,60,000
Current Assets 90,000
Ans: - 0.22: 1
Q:-14 Current liabilities of a company are ₹ 1,60,000. Its liquid ratio is 1.5: 1 and current ratio is 2.5: 1. Calculate
quick assets and current assets. (All India 2013)
Ans: - Quick Assets:- ₹240000 and Current Assets:- ₹400000
Q:-15 From the following information, calculate the following ratios:-
(i) Debt equity ratio
(ii) Working capital turnover ratio
(iii) Return on investment
Information Equity share capital ₹ 50,000; general reserve 15,000; statement of profit and loss after tax and interest
₹ 15,000; 9% debenture ₹ 20,000; creditors ₹ 15,000; land and building ₹ 65,000; equipments ₹ 15,000; debtors ₹
14,500 and cash ₹ 5,500; revenue from operations for the year ended 31st March, 2011 was ₹ 50,000. Tax rate 50%.
(Delhi 2012 (Modified)
Ans: - Debt Equity Ratio = 0.286 : 1 Working Capital Turnover Ratio = 30 times; Return on Investment = 35.33%
Q:-16 From the following information obtained from the books of Kundan Ltd, calculate the inventory turnover
ratio for the years 2015-16 and 2016-17.
2015-16 (₹) 2016-17 (₹)
Inventory on 31st March 700000 1700000
Revenue from Operations 5000000 7500000
(Gross profit is 25% on cost of revenue from operations)
In the year 2015-16, inventory increased by ₹ 2,00,000. (CBSE 2018)Ans:-6.67 Times(2015-16), 5 Times(2016-17)

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