Practice Questions on Accounting Ratios | Class 12 Accountancy

1. Current ratio of a company is 1.5:1. Current assets are Rs 300,000. Subsequently, it paid Rs 50,000 to it's creditors. Find out the revised current ratio. 
2. Current ratio of a company is 4:1, Working capital is Rs 240,000 and  inventory is Rs 40,000. Find out its liquid ratio.
3. If total debts are Rs 370,000, long term debts are Rs 200,000 and working capital is Rs 180,000, find out its current assets. 
4. Calculate current ratio and debt equity ratio from the following information: Non current assets Rs 16,00,000, current assets Rs 400,000, working capital Rs 200,000 and non current liabilities Rs 1200,000.
5. From the following information, compute proprietary ratio: Long term borrowings Rs 200,000, Long term provisions Rs 100,000, Current liabilities Rs 50,000, Non current assets Rs 360,000, Current assets Rs 90,000. 
6. Debt to equity ratio of a company is 1:2. State with reason whether the following transactions would result in increase, decrease or no change in the ratio: a. Issued equity shares of Rs 100,000., b. Obtained a short term loan from bank Rs 100,000, c. Repayment of long term loan.
7. Total purchases are Rs 600,000. 50% of total purchases are cash purchases. Creditors and bills payable are Rs 40,000 and Rs 10,000 respectively. Calculate trade payable turnover ratio.
8.  Find out average inventory and gross profit ratio from the given information: cash sales - Rs 200,000 , credit sales - Rs 400,000, gross profit is 25 % on cost, inventory turnover ratio - 4 times.