T S Grewal Solutions 2026-27 [Class 12] – Ratio Analysis– Q 131 to 140

Solution for Q 131 to 140 of Chapter 4 of Book 3 - Analysis of Financial Statements of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Ratio Analysis class 12. These Solutions are based on topics Net assets turnover ratio, Profitability ratios which includes gross profit ratio,

Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps.Debt equity ratio is a key ratio is finfing the long term solvency of any business and is critical business health parameter. A higher debt equity ratio is generally considered unhealthy for business as it indicates higher dependency on external funds and future solvency problems may arise.

These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.

Question 131

Step 1
Capital	=	Property, Plant and	+	Working
Employed		Equipment		Capital
	=	1000000	+	500000
	=	1500000

Step 2
Lest the COGS be			100
Gross Profit			20
Revenue from Operations			120

Revenue from		=	120	/	100	X	5000000
Operations		=	6000000

Step 3
Net Assets	=	Revenue from		/	Capital
Turnover Ratio		Operations			Employed

	=	6000000		/	1500000
	=	4	Times

▶ Video Solution: Coming Soon

Question 132

Step 1
Capital	=	Shareholders	+	Long Term
Employed		Funds		Debts

	=	1000000	+	2000000
	=	3000000

Step 2
Gross Profit	=	2000000

Cost of Revenue	=	100
GP	=	20	2000000
Revenue	=	120

Revenue	=	120/20*2000000
from Operations		12000000

Step 3
Net Assets	=	Revenue from		/	Capital
Turnover Ratio		Operations			Employed

	=	12000000		/	3000000
	=	4	Times

▶ Video Solution: Coming Soon

Question 133

Step 1
Capital	=	Shareholder Funds		+	Non Current Liabilities
Employed
	=	1300000		+	500000

	=	1800000

			OR
		Non Current Assest + Current Assets - Current Liabilities
		1300000		700000		200000

		1800000

Step 2
Revenue from	=	4500000
Operations

Step 3
Net Assets	=	Revenue from		/	Capital
Turnover Ratio		Operations			Employed

	=	4500000		/	1800000
	=	2.5	Times

Net Fixed Assets	=	1300000

Step 4
Fixed Assets	=	Revenue from		/	Net Fixed
Turnover ratio		Operations			Assets

	=	4500000		/	1300000

	=	3.46	Times

▶ Video Solution: Coming Soon

Question 134

Step 1

Gross	=	Gross profit	/	Revenue from	X	100
Profit Ratio				Operations
		50000	/	500000	X	100
	=	10%

Note : Sales return is already reduced while calculating revenue from operations

▶ Video Solution: Coming Soon

Question 135

Step 1
Gross Profit	=	Net Sales	-	Cost of Goods Sold
		600000	-	540000
	=	60000

Step 2
Gross Profit Ratio	=	Gross profit	/	Revenue from	X	100
				Operations
		60000	/	600000	X	100
	=	10%

▶ Video Solution: Coming Soon

Question 136

Step 1
Gross Profit	=	25% of Cost

Let the cost be Rs 100
Gross Profit will be Rs 25
Revenue will be Rs 125

Now we have to find Gross profit from revenue from operations
So we keep Gross profit as numerator and Revenue
form operations as denominator

Revenue		Gross Profit
125	=	25
1	=	25/125
	=	25/125X400000

	=	80000

Step 2
Gross	=	Gross profit	/	Revenue from	X	100
Profit Ratio				Operations
		80000	/	400000	X	100
	=	20%

▶ Video Solution: Coming Soon

Question 137

Step 1
Can be solved either by taking total sales as x or by method of 100
Here we are doing assuming total sales to be x
Let the total sales be x
So,
Cash Sales will be	20% of x	or	0.2x

Now,
Total Sales	-	Cash Sales	=	Credit Sales
x	-	0.2x	=	500000

		0.8x	=	500000
		x	=	500000	/	0.8
			=	625000

		Total Sales	=	625000

Step 2
Cost of	=	Opening	+	Purchases	-	Closing
Goods Sold		Stock				Stock

	=	Change in stock	+	Purchases

		Note : Change in Stock = Opening Stock - Closing Stock

		In this question closing stock > Opening Stock
		So Change in stock		=	-25000

	=	-25000	+	400000

	=	375000

Step 3
Gross Profit	=	Net Sales	-	Cost of Goods Sold
		625000	-	375000
	=	250000

Step 2
Gross Profit Ratio	=	Gross profit	/	Revenue from	X	100
				Operations
		250000	/	625000	X	100
	=	40%

▶ Video Solution: Coming Soon

Question 138

Step 1
If Credit sale	4	Then	Cash Sales		1
If Credit sale	1	Then	Cash Sales		1/4
If Credit sale	1000000	Then	Cash Sales		1/4 X 1000000

			Cash Sales	=	250000

Step 2
Total Sales	=	Credit sales	+	Cash Sales
		1000000	+	250000
	=	1250000

Step 3
Cost of	=	Opening	+	Net	-	Closing	+	Direct
goods Sold		Stock		Purchases		Stock		Expenses

	or	Opening	-	Closing	+	Net	+	Direct
		Stock		Stock		Purchases		Expenses

	or	Decrease			+	Net	+	Direct
		in inventory				Purchases		Expenses

		20000			+	580000	+	120000
	=	720000

Step 4
Gross Profit	=	Net Sales	-	Cost of Goods Sold
		1250000	-	720000
	=	530000

Step 5
Gross	=	Gross profit	/	Revenue	X	100
Profit Ratio				from Operations
		530000	/	1250000	X	100
	=	42.4%

▶ Video Solution: Coming Soon

Question 139

Step 1
Cost of	=	Opening	+	Net	-	Closing	+	Direct
goods Sold		Stock		Purchases		Stock		Expenses

	or	Opening	-	Closing	+	Net	+	Direct
		Stock		Stock		Purchases		Expenses

	or	Decrease in inventory			+	Net	+	Direct
						Purchases		Expenses
		122000			+	380000	+	28000

	=	530000

Note :	Net	=	Cash	+	Credit	-	Return
	Purchases		Purchase		Purchase		Outwards
			40000		360000		20000
		=	380000

Note :	Direct	=	Carriage	+	Wages
	Expenses		Inwards
			8000	+	20000
		=	28000

Step 2
Gross Profit	=	Revenue from	-	Cost of Goods Sold
		Operations
		1000000	-	530000
	=	470000

Step 3
Gross	=	Gross profit	/	Revenue	X	100
Profit Ratio				from Operations
		470000	/	1000000	X	100
	=	47%

▶ Video Solution: Coming Soon

Question 140

Step 1
Average Inventory	=	(Opening Inventory	+	Closing Inventory)	/	2
	=	200000	+	120000	/	2
	=	160000

Step 2
Inventory	=	Cost of		/	Average
Turnover Ratio		Goods Sold			Inventory
8		x		/	160000

Cost of	=	Inventory Turnover Ratio			X	Average Inventory
Goods Sold			8			160000

	=	1280000

Step 3
Now,
Selling price is 25% above cost
So, Gross Profit will be
25% of cost of goods sold will be		Cost of Goods Sold	X	25%
		1280000	X	25%

	=	320000
Next,
Sales	=	Cost of Goods Sold	+	Gross Profit
		1280000	+	320000
	=	1600000

Step 4
Gross	=	Gross profit	/	Revenue from	X	100
Profit Ratio				Operations
		320000	/	1600000	X	100
	=	20%

▶ Video Solution: Coming Soon

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