Solution for Q 91 to 100 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 calculation of gross profit and revenue from operations, calculation of opening and closing inventory, calculation of revenue from operations, trade receivables turnover 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 100
| Trade Receivables |
= |
Net Credit Sales |
/ |
Average Trade Receivables |
| Turnover Ratio |
1440000 |
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/ |
120000 |
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= |
12 |
Times |
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| Note : Prov for Doubtful Debts not considered for calculating this ratio |
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| Note : In the absence of information all sales are considered as credit sales |
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| Note : In the absence of information closing trade receivables is assumed to be average trade receivables |
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▶ Video Solution: Coming Soon
Question 91
| Step 1 |
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| Inventory Turnover Ratio |
= |
Cost of Goods Sold |
/ |
Average Inventory |
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8 |
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COGS |
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/ |
80000 |
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| So, |
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| Cost of Goods Sold |
= |
Inventory Turnover Ratio |
X |
Average Inventory |
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8 |
X |
80000 |
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= |
640000 |
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| Step 2 |
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| Selling Price is 25% above cost |
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| So, Gross profit is 25% of Cost of Goods Sold |
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| So, |
Gross Profit |
= |
640000 |
X |
25/100 |
= |
160000 |
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| Step 3 |
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Revenue |
= |
Cost of Goods Sold |
+ |
Gross Profit |
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from operations |
640000 |
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+ |
160000 |
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= |
800000 |
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▶ Video Solution: Coming Soon
Question 92
| Step 1 |
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| Gross Profit |
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25% of Cost |
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| Let the cost be Rs 100 |
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| Gross Profit will be Rs 25 |
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| Revenue will be Rs 125 |
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| Now we have to find Gross profit from revenue from operations |
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| So we keep Gross profit as numerator and Revenue form operations as denominator |
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| Revenue |
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Gross Profit |
| 125 |
= |
25 |
384000 |
| 1 |
= |
25/125 |
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| 548000 |
= |
25/125X480000 |
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= |
96000 |
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To Find Opening Stock in such cases, easiest approach is to prepare trading A/c |
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Particulars |
Amount |
Particulars |
Amount |
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Opening Stock |
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92000 |
Sales |
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480000 |
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(Balancing Figure) |
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Closing Inventory |
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68000 |
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Purchases |
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360000 |
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Gross Profit (As Below) |
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96000 |
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Total |
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548000 |
Total |
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548000 |
| Or |
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| Cost of Goods Sold |
= |
Sales |
- |
Gross Profit |
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480000 |
- |
96000 |
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= |
384000 |
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| Cost of Goods Sold |
= |
Opening Inventory |
+ |
Purchases |
- |
Closing Stock |
| 384000 |
= |
x |
+ |
360000 |
- |
68000 |
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| x |
= |
384000 |
- |
360000 |
+ |
68000 |
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| Opening Inventory |
= |
92000 |
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▶ Video Solution: Coming Soon
Question 93
| Step 1 |
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| Total Sales |
= |
200000 |
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| Gross Profit % |
= |
25% |
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| Gross Profit |
= |
50000 |
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| Cost of Goods Sold |
= |
150000 |
(Sales - Gross Profit) |
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| Step 2 |
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| Inventory Turnover Ratio |
= |
Cost of Goods Sold |
/ |
Average Inventory |
| 5 |
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150000 |
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/ |
AI |
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| Average Inventory |
= |
Cost of Goods Sold |
/ |
Inventory Turnover Ratio |
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150000 |
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5 |
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= |
30000 |
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| Step 3 |
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| Let the opening inventory be x |
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| Then closing inventory will be (x + 4000) |
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| Average Inventory |
= |
(Opening Inventory |
+ |
Closing Inventory) |
/ |
2 |
| 30000 |
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= |
x |
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+ |
(x + 4000) |
/ |
2 |
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| Solve this equation for x |
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| 2x + 4000 |
= |
60000 |
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| 2x |
= |
56000 |
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| x |
= |
28000 |
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| Step 4 |
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| Closing Invventory |
= |
Opening Inventory |
+ |
4000 |
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28000 |
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+ |
4000 |
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= |
32000 |
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▶ Video Solution: Coming Soon
Question 94
| Step 1 |
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| Inventory |
= |
Cost of Goods Sold |
/ |
Average Inventory |
| Turnover Ratio |
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5 |
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1890000 |
/ |
AI |
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| Average |
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= |
Cost of Goods Sold |
/ |
Inventory Turnover Ratio |
| Inventory |
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1890000 |
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5 |
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= |
378000 |
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| Step 2 |
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| Let the opening inventory be x |
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| So, |
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| Closing inventory is 2.5 times more then opening inventory |
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| (Notice here the change in language) |
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| 2.5 times will be 2.5 x |
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| Closing Inventory |
= |
x |
+ |
2.5x |
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= |
3.5x |
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| Average Inventory |
= |
(Opening |
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+ |
Closing |
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/ |
2 |
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Inventory |
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Inventory) |
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| 378000 |
= |
x |
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+ |
3.5x |
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/ |
2 |
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| Solve this equation for x |
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| 4.5x |
= |
756000 |
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| x |
= |
756000 / 4.5 |
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| x |
= |
168000 |
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| Step 3 |
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| Closing Inventory |
= |
Opening Inventory |
X |
3.5 |
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168000 |
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X |
3.5 |
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= |
588000 |
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▶ Video Solution: Coming Soon
Question 95
| Step 1 |
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| Inventory |
= |
Cost of Goods Sold |
/ |
Average Inventory |
| Turnover Ratio |
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| 6 |
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COGS |
/ |
100000 |
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| COGS |
= |
Inventory Turnover Ratio |
X |
Average Inventory |
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6 |
X |
100000 |
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= |
600000 |
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| Step 2 |
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| Let the revenue from operations be |
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100 |
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| Then, Gross Profits will be |
25 |
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| COGS |
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75 |
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| Now, |
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| Revenue from |
= |
100 |
/ |
75 |
X |
600000 |
| Operations |
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= |
800000 |
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▶ Video Solution: Coming Soon
Question 96
| Step 1 |
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| Net Credit Sales |
= |
Total Sales |
- |
Sales Return |
- |
Cash Sales |
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100000 |
- |
1500 |
- |
23500 |
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= |
75000 |
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| Step 2 |
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| Average |
= |
(Opening |
+ |
Closing |
/ |
2 |
| Trade Receivables |
Trade Receivable |
Trade Receivable) |
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|
(28000+7000) |
+ |
(25000+15000) |
/ |
2 |
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35000 |
+ |
40000 |
/ |
2 |
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= |
37500 |
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| Step 3 |
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| Trade Receivables |
= |
Net Credit Sales |
/ |
Average Trade Receivables |
| Turnover Ratio |
75000 |
/ |
37500 |
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= |
2 |
Times |
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| Average collection |
= |
12/2 = 6 months |
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| period |
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360/2 = 180 days |
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| Note : Prov for Doubtful Debts not considered for calculating this ratio |
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| as it is just a provision and not a real bad debt |
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▶ Video Solution: Coming Soon
Question 97
| Step 1 |
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| Net Credit Sales or |
= |
Total Revenue |
- |
Cash Revenue |
| Credit revenue |
from Operations |
form operations |
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720000 |
- |
180000 |
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= |
540000 |
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| Step 2 |
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| Trade Receivables |
= |
Net Credit Sales |
/ |
Average Trade Receivables |
| Turnover Ratio |
540000 |
/ |
90000 |
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= |
6 |
Times |
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| Note : Prov for Doubtful Debts not considered for calculating this ratio |
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| Note : Since the opening and closing trade receivables are not given so we have considered |
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| closing trade receivables as average trade receivables |
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▶ Video Solution: Coming Soon
Question 98
| Step 1 |
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| Let the credit sales be x |
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| Cash sales will be 0.25x |
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| Total Sales |
= |
Credit sales |
+ |
cash sales |
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| 600000 |
= |
x |
+ |
0.25x |
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| x |
= |
600000 |
/ |
1.25 |
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= |
480000 |
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| Credit sales |
= |
480000 |
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| Step 2 |
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| Average |
= |
(Opening Trade |
+ |
Closing Trade |
/ |
2 |
| Trade Receivables |
Receivable |
Receivable) |
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(100000-40000) |
+ |
100000 |
/ |
2 |
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60000 |
+ |
100000 |
/ |
2 |
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= |
80000 |
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| Step 3 |
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| Trade Receivables |
= |
Net Credit Sales |
/ |
Average Trade Receivables |
| Turnover Ratio |
480000 |
/ |
80000 |
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= |
6 |
Times |
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| Collection period |
12/6 = 2 months |
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360/6 = 60 days |
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▶ Video Solution: Coming Soon
Question 99
| 31-Mar-25 |
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| Trade Receivables |
= |
Net Credit Sales |
/ |
Average Trade Receivables |
| Turnover Ratio |
800000 |
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/ |
100000 |
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(83000 + 117000)/2 |
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= |
8 |
Times |
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| 31-Mar-26 |
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| Trade Receivables |
= |
Net Credit Sales |
/ |
Average Trade Receivables |
| Turnover Ratio |
700000 |
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/ |
100000 |
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= |
7 |
Times |
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| Note : Credit sales are not given separately so total sales is considered for calculating the ratio |
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| Note : Sales return will not be deducted as revenue from operations is already given in the question |
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▶ Video Solution: Coming Soon
