The topics included in NCERT Books for Class 12 Accountancy are Accounting for Not-for-Profit Organisation, Dissolution of Partnership Firm, Cash Flow Statement, etc. Operating Ratio Changes in inventory = Opening Inventory – Closing Inventory Account. 50,000 5,000 Read online Accounting Ratios notes for CBSE Class 12 Accountancy book pdf free download link book now. (e) Return on Capital Employed or Investment: Capital employed means the long-term funds employed in the business and includes shareholders’ funds, debentures and long-term loans. 1. svg: { Required fields are marked *. 4,000 − Rs. Working Capital Turnover Ratio Significance: It assesses the long term soundness of financial position of a business. 73,000 + Rs. 2. Following information is available for the year 2014-15, calculate gross profit ratio: Revenue from Operations = Cash Revenue from Operations + Credit Revenue from Operation Operating Ratio = (Cost of Revenue from Operations + Operating Expenses)/ Net Revenue from Operations × 100. Financial Statement of a Company 10.  Inventories = Rs. 10,000 and the ‘Revenue from Operations’ are Rs. Operating Profit = Net Revenue from Operations – Operating Cost 4,00,000 × 20 / 100 = Rs. Home ; Grade 12 ; Account; Back to subjects. (b) Trade Receivables Turnover Ratio: It expresses the relationship between credit revenue from operations and trade receivable. The language of the session will be in Hindi and notes will be provided in English. OR Total Assets = Fixed Assets (Tangible and Intangible) + Non Current Investment (Excluding Non trading Investment) +long Term Loans and Advances + Current Assets Free PDF download of Important Questions for CBSE Class 12 Accountancy Chapter 13 Accounting Ratios prepared by expert Accountancy teachers from latest edition of CBSE(NCERT) books, On CoolGyan.Org to score more marks in CBSE board examination. Current Ratio = Current Assets : Current Liabilities or Current Assets / Current Liabilities. 2. Current Ratio = 3.5 : 1  Quick Ratio = 2 : 1 Dec 18, 2020 - Ratios (Important Questions) : Accountancy Class 12 Class 12 Notes | EduRev is made by best teachers of Class 12. = Rs. NOTES. 22,000/ 2 = Rs. OR 4,00,000 − Rs. = 18,00,000 − 2,00,000 = 16,00,000 PDF download free. 2. Accounting Ratios: L-5 | Activity or Turnover Ratios | Class 12 Accounts PDF Notes | V Commerce. 1. Equity/Shareholders’ Funds = Share Capital + Reserves and Surplus – Non – Trading Investments All you need of Commerce at this link: Commerce Question:51 Quick Ratio = Quick assets : Current liabilities High Ratio is better for lenders as it indicates higher safety margin. By Liability Approach: 1,30,000 + Rs. (c) Operating Profit Ratio: It is calculated to reveal operating margin. = 32,00,000 / 16,00,000 = 2 : 1 = 1.67 times. 80,000 Students should solve the CBSE issued sample papers to understand the pattern of the question paper which will come in class 12 board exams this year. Inventories = Current assets − Quick assets Capital Employed = Non Current Assets + Working Capital Capital Employed = Fixed Assets (Tangible and Intangible) + Non Current Investment (Excluding Non Trading Investment) + Long Term Loans and Advances + Working Capital Net Working Capital and Revenue from Operations i.e., Net Sales. NCERT Solutions Class 12 Accountancy 2 Chapter 5 Accounting Ratios. Activity Ratios/Turnover Ration/Performance Ratios Generally a higher ratio indicates better profitability. Current Liabilities: trade payables (Bills Payable + sundry creditors) + expenses payable T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE, 4 Accounting Ratios. Equity/Shareholders’ Funds = Fixed Assets (Tangible and Intangible) + Non Current Investment (Excluding Non Trading investment) +Long Terms Loans and Advances + Current Assets – Current Liabilities – Long –term borrowings – Long – term Provision }, Topic 1: Introduction 1. 80,000 = 4 times. This ratio indicated the number of times the Trade Payables are turned over in relation to credit purchases over a year. Accounting For Debentures - Company Accounts 9. Debt Equity Ratio: It show relationship between Debts (Long term Liabilities or Non Current Liabilities) and Equity (Shareholders’ Funds). Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Accounting ratios. Net Profit before tax = Net profit after tax × 100/ (100 − Tax rate) Cash Revenue from operations = 20% of Rs. Debts = Long-term borrowing + Long-term provisions OR These ratios indicate the speed at which, activities of the business are being performed. Also after the chapter you can get links to Class 12 Accountancy Notes, NCERT Solutions, Important Question, Practice Papers etc. Debts = Long-term borrowing + Long-term provisions 4. Capital Employed = fixed Assets (Tangible and Intangible) + Non Current Investment (Excluding Non Trading Investment) + Long Term Loans and Advances + Current Assets – Current Liabilities. Solvency Ratio : Solvency ratios convey an enterprise’s ability to meet its long term obligations as and when they becomes due. Liquidity Assets = Current assets − (Inventories + Prepaid expenses + Advance tax) Solvency Ratios Solvency ratios judge the long-term financial position of an enterprise i.e. Generally a higher ratio indicate better profitability. = Rs. Download All DK Goel Textbook solutions for class 12 Accountancy Volume 2 chapter 5 to understand all concepts in deatils. Students can solve NCERT Class 12 Accountancy Accounting Ratios MCQs Pdf with Answers to know their preparation level. 12,00,000 / Rs. = Rs. Accounting Ratios - CBSE Notes for Class-12 Accountancy. If excess of current assets over quick assets represented by inventories is Rs. 11 Accounting for Material. 2. Rotate Clockwise Rotate Counterclockwise. Accounting Ratios It is a mathematical expression that shows the relationship between various items or groups of items shown in financial statements. Capital employed may be taken as the total of non-current assets and working capital. If debt component of the total long-term funds employed is small, outsiders feel more secure. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. To know more, stay tuned to BYJU’S. 3.  Inventory at the end = 22,000 Significance: It reveals the number of times interest on long-term debts is covered by the profits available for interest. = Rs. 2. 1-b, 2-b, 3-c. 1,20,000 3. A higher ratio ensures safety of interest on debts. Classification of Ratios : Accounting ratios are used to analyse the financial position of the firm. Tools of Financial Statement Analysis 12. Tax Rate = 40% 1,00,000 Working Capital Turnover Ratio : It establishes the relationship between Is 10 % × 10,000 100 1,00,000 of the session will be provided in English Grade. Purchases, It can be classified from different point of view of interest payable close between. 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