Smt.

Rukmanrani Education Foundations

WISDOM HIGH INTERNATIONAL SCHOOL & JR.
COLLEGE
NASHIK
QUESTION PAPER
Academic Year: 2024-25 DI No. EXM/DI/03
Location: GOC Rev:02 Date:17.07.2023 Section: All Boards
Release Date: 07/11/2024

SLIP TEST 9
SUBJECT: ACCOUNTS
RATIO ANALYSIS
Question 1. Answer the following questions [6]
GRADE:
a) XII (ISC)the transaction involving an increase in Debt-Equity Ratio and no change
Identify DATE:in-Current
13/12/2024
[1]
TIME: 1Hr. 30
Ratio.
min MARKS: 24
HOD: - ________ HEAD: -________
(a) Issue of Debentures for Cash.
(b) Redemption of Preference Shares for Cash.
(c) Issue of Shares for cash.
(d) Issue of Debentures against the Purchase of Fixed Asset.
b) Following figures have been extracted from the Balance Sheet of JK Tyre and Industries as [1]
at 31st March, 2024: (₹ in cr.)
Current Liabilities 3530.69
Current Assets (including inventories of ₹ 1396.54 cr) 4764.83
(Source: Web, Annual
Reports.)
You are required to calculate that Short-term Solvency Ratio which is not relying upon
the realisation of Inventory.
(Application)
c) Which of the following statement is not correct about Earning Per Share (EPS): [1]
(a) EPS measures the earning available to an equity shareholder on per share basis.
market value of an equity share
(b) Earning per Share (EPS) =
Price Earning Ratio
(c) EPS helps in evaluating the prevailing market price of share in the light of profit
earning capacity.
(d) The more is the EPS, better is the performance and prospects of the company.
(Application)
d) Following information is obtained from Standalone Balance Sheet of ITC Ltd. as at 31st [1]
March, 2024:
(₹ in Crore)
(a) • Equity Share Capital 1,248.47
• Other Equity (Reserves and Surplus) 70,984.83 72,233.30
(b) Non-current Assets 51,256.93
(c) Current Assets 36,070.67
(Source: Annual Report of ITC Ltd.)
You are required to calculate Proprietary Ratio of the company. (Analysis)
e) The books of accounts of Daffodil Ltd. showed: [1]
• Change in inventories of Stock-in-Trade (₹ 1,40,000).
• Opening Inventory of Stock-in-Trade ₹ 2,80,000
(a) You are required to give the formula used by the company to calculate change in
inventories. (Recall)
Grade XII ISC Slip 9 Test Accounts (2024-25) Release Date: 07/11/2024 Page 1
 (b) You have been provided with one component for calculating the change in
inventories. Calculate the other component. (Analysis)

f) Debt-Equity Ratio of Surya Ltd. is 2 : 1. Which of the following will result in decrease in this [1]
ratio?
(a) Issue of debentures for cash of ₹ 1,00,000.
(b) Issue of debentures of ₹ 5,00,000 to vendors from whom machinery was
purchased.
(c) Goods purchased on credit of ₹ 1,00,000.
(d) Issue of Equity Shares of ₹ 2,00,000.
Question 2. Answer any three of the following
(a) From the following particulars of Tanay Ltd., calculate Working Capital Turnover [6]
Ratio:
Capital Employed ₹ 16,00,000
Non-current Assets ₹ 10,00,000
Cost of Revenue from Operations ₹ 18,00,000
Gross Profit ₹ 6,00,000
(Application)
(b) Calculate Gross Profit Ratio (up to two decimal places) from the following
information:
Revenue from Operations ₹ 6,00,000
Gross Profit 25% on Cost
(Application)
(c) Calculate Debt to Total Assets Ratio (up to two decimal places) from the
following information:
₹ ₹
Non-current Assets 16,00,000 Current Assets 16,00,000
Long-term Borrowings 10,00,000 Long-term Provisions 6,00,000
(Application)
(d) State giving reason, whether the Current Ratio will improve or decline or will
have no effect in each of the following transactions if Current Ratio of Star Ltd. is
2 : 1.
1. Bills Receivable endorsed to creditors.
2. Bills Receivable endorsed to creditors dishonored. (Application)
Question 3. Answer any three of the following questions (Application) [6]
(i) Particular ₹
Gross Profit 80,000
Salary and Rent 30,000
Interest on Debentures 5,000
Gain on Sale of Furniture 2,000
Revenue from Operations 4,00,000
(ii) Calculate the Gross Profit Ratio (up to two decimal places) from the following
information:
Particular ₹
Opening Inventory 80,000
Grade XII ISC Slip 9 Test Accounts (2024-25) Release Date: 07/11/2024 Page 2
 Closing Inventory
Revenue from Operations 1,00,000
Inventory Turnover Ratio 9,00,000
8 Times

(iii) Calculate Price Earnings Ratio from the following information:

₹
Net Profit after Interest and Tax 2,40,000
15% Preference Share Capital 1,00,000
Equity Share Capital (Face value ₹ 10 per share) 5,00,000
Note: Market Value of an equity share is ₹ 40. (Application)
(iv) Net Profit Ratio 10%; Cost of Revenue from Operations ₹ 20,00,000; Gross Profit 25%
above cost; 9% Debentures ₹ 18,00,000; Capital Employed ₹ 32,00,000.
You are required to calculate Return on Investment. (Application)
Question 4. Answer any three of the following questions: [6]
(i) Operating Cost ₹ 8,50,000; Gross Profit Ratio 20%; Operating Expenses
₹ 50,000. Calculate Operating Profit Ratio
(Application)
(ii) Capital Employed ₹ 10,00,000; interest on Long-term Borrowings @ 10%
₹ 60,000.
Compute ‘Debt to Equity Ratio’ (Application)
(iii) Karishma Ltd.’s profit 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 Karishma Ltd (Application)
(iv) For the year 2023–24
 The Interest Coverage Ratio of ‘Srestha Ltd.’ is 8 Times
 Its 10% Long-term Borrowing is ₹ 4,00,000.
(a) You are required to give the formula used by the company to calculate
‘Interest Coverage Ratio’.
(b) You have been provided with two components for calculating the Interest
Coverage Ratio. Calculate the remaining component.
(Application)

Grade XII ISC Slip 9 Test Accounts (2024-25) Release Date: 07/11/2024 Page 3