Ratio analysis Question Bank 2014 to 2025 [For Dibrugarh University BCOM 6th SEM NEP Syllabus]

Ratio analysis Question Bank
For Dibrugarh University BCOM 6^th SEM NEP Syllabus

Preparing for your B.Com 6th Semester exams under the new NEP Syllabus can feel like a high-stakes balancing act. Among the various chapters in Management Accounting, Ratio Analysis stands out as a critical area where students can either score full marks or lose them in a maze of formulas. To help you navigate this, we have compiled a comprehensive Ratio Analysis Question Bank featuring practical problems from Dibrugarh University exams spanning over a decade, from 2014 to 2025.

5. (a) Prepare a Balance Sheet from the following information: (14)

Current ratio — 2.5

Liquidity ratio — 1.5

Proprietary ratio (Fixed Asset/Proprietor's Fund) — 0.75

Working capital — 1,20,000

Reserve and surplus — 80,000

Bank overdraft — 20,000 (Assume no long-term loan/fictitious assets)

(a) Prepare a Balance Sheet from the following information:

Gross profit (20% of sales) – ₹30,000

Equity share capital – ₹25,000

Credit sales to total sales – 80%

Total assets turnover – 3 times

Stock turnover – 8 times

Average collection period (360 days) – 18 days

Current ratio – 1.6:1

Long-term debt to equity ratio – 40%

5. (a) A company has owner’s equity of Rs. 1,00,000 and following accounting ratios:

Short-term debt to total debt = 0.40

Total debt to owner’s equity = 0.60

Fixed assets to owner’s equity = 0.60

Total assets turnover = 2 times.

Inventory turnover = 8 times.

On the basis of the above data prepare the Balance Sheet:

Capital & Liabilities	Rs.	Assets	Rs.
Short-term Debts Long-term Debts Owner’s Equity	-- -- --	Cash Inventories Total Current Assets Fixed Assets	-- -- --

(b) Dibrugarh Tea Ltd. presents its Profit and Loss A/c for the year ending 31^st March, 2022 and a Balance Sheet as on that date as follow:

Profit and Loss A/c for the year ending 31^st March, 2022

	Rs.		Rs.
To Opening Inventory To Purchase of raw material To Factory expenses To Administrative expenses To Selling expenses To Interest on debenture To Depreciation To Net Profit	40,000 50,000 60,000 20,000 10,000 2,000 5,000 50,000	By Sales By Closing Inventory By Profit on sale of furniture	2,00,000 30,000 7,000
	2,37,000		2,37,000

Balance Sheet as on 31^st March, 2022

Liabilities	Rs.	Assets	Rs.
Equity shares of Rs. 10 each. 9% Preference share of Rs. 100 each Reserve 6% debenture Trade Creditors Outstanding expenses	20,000 20,000 15,000 40,000 25,000 5,000	Fixed Assets Inventory Debtors Bank	85,000 30,000 8,000 2,000
	1,25,000		1,25,000

The company has paid 20% dividend to equity shareholders and preference dividend has also been paid. Tax rate is 30%. The equity shares are quoted in stock exchange at Rs. 40 per share. Compute the following:

(a) Liquid Ratio.

(b) Debt-Equity Ratio.

(c) Dividend Coverage Ratio.

(d) Debtors Turnover Ratio.

(e) Working Capital Turnover Ratio.

(f) Net Profit Ratio.

(g) Return on Investment Ratio.

5. (a) The following information are available for a firm:

(1) Gross Profit Ratio – 25%.

(2) Net Profit / Sales – 20%.

(3) Stock Turnover – 10.

(4) Net Profit / Capital – 1/5.

(5) Capital / Total Liabilities – 1/2.

(6) Fixed Assets / Capital – 5/4.

(7) Fixed Assets / Current Assets – 5/7.

(8) Fixed Assets – Rs. 10,00,000.

(9) Closing Stock – Rs. 1,00,000.

Find out:

(a) Cost of Sales.

(b) Gross Profit.

(c) Net Profit.

(d) Current Assets.

(e) Capital.

(f) Total Liabilities.

(g) Opening Stock.

(2) The following are the information collected from the final accounts of a firm:

	Rs.
Total Purchases Cash Purchases Purchases Returns Creditors at the end Bills Payable at the end	10,00,000 2,00,000 60,000 1,60,000 40,000

You are required to calculate the following:

1) Creditors turnover ratio.

2) Average payment period.

(b) The following information is given about PD Ltd. for the year ended 31^st March, 2017:

Current ratio Acid-test ratio Current liabilities

2.5 : 1 1.5 : 1 Rs. 50,000

Find out:

a) Current assets;

b) Liquid assets;

c) Inventory.

4. (a) The following information are available for a firm:

Gross Profit Ratio – 25%

Net Profit/Sales – 20%

Stock Turnover – 10

Net Profit/Capital – 1/5

Capital/Total Liabilities – 1/2

Fixed Assets/Capital – 5/4

Fixed Assets/Current Assets – 5/7

Fixed Assets – Rs. 10,00,000

Closing Stock – Rs. 10,00,000

Find out:

a) Cost of Sales.

b) Gross Profit.

c) Net Profit.

d) Current Assets.

e) Capital.

f) Total Liabilities.

g) Opening Stocks.

(b) Prepare a projected Balance Sheet on the basis of the following information:             

Average Collection Period – 36 days in a year of 360 day

Fixed Assets to Net Worth – 75%

(b) Debtors’ Velocity – 3 months

Creditors’ Velocity – 2 months

Stock Velocity – 8 times

Fixed Assets Turnover Ratio – 8 times

Gross Profit Ratio – 25%

Gross Profit in the year amounted to Rs. 80,000. There is no long-term Loan and Bank Overdraft. Reserve and Surplus amounted to Rs. 28,000. Liquid Assets are Rs. 97,333. Closing Stock is Rs. 2,000 more than Opening Stock. Bills Receivable and Payable are Rs. 5,000 and Rs. 2,000 respectively.

Find out (i) Sales; (ii) Sundry Debtors; (iii) Closing Stock; (iv) Sundry Creditors; (v) Fixed Assets; and (vi) Proprietor’s Fund.

(b) From the following information, prepare the Balance Sheet:

Particulars	Rs.
Net Working Capital Reserve and Surplus Bank Overdraft Current Ratio Liquid Ratio Fixed Assets to Proprietor’s Fund Long-term Liabilities	75,000 1,00,000 60,000 1.75 1.15 0.75 NIL

(b) The following is the Balance Sheet of Jagjeevan Industries Ltd. as on 31^st March, 2016:

Particulars	Amount (in Rs.)
I. Equity and Liabilities: a) Shareholder’s Fund Equity Share Capital Reserve and Surplus b) Non Current Liabilities: 10% Debentures c) Current Liabilities: Bank Overdraft Sundry Creditors	22,50,000 9,00,000   7,50,000   3,00,000 18,00,000
	60,00,000
II. Assets: a) Non-Current Assets: Fixed Assets b) Current Assets: Investments (short term) Stock-in-Trade Sundry Debtors Cash	24,75,000   2,40,000 13,65,000 18,60,000 60,000
	60,00,000

Other Information: Sales – Rs. 1, 11, 60,000; Gross Profit – Rs. 11, 16,000

You are required to calculate the following ratios:

a) Debt-Equity Ratio.

b) Proprietary Ratio.

c) Debtors’ Turnover Ratio.

d) Stock Turnover Ratio.

4. (a) From the following balance sheet of Assam Co. Ltd as on 30^th June, 2014, calculate the following:   3x4=12

(i) Debt to equity ratio

(ii) Current ratio

(iii) Quick ratio

(iv) Working capital turnover ratio

Balance Sheet of Assam Co. Ltd

AS on 30^th June, 2014

Liabilities	Amount	Assets	Amount
Equity Share capital Capital Reserve 12% loan Creditors Bank overdraft Provision for taxation Profit and loss account	28,000 5,600 22,400 11,200 2,800 5,600 8,400	Goodwill Fixed Assets Stock Debtors Short-term investment Cash in hand Underwriting commission	13,600 39,200 8,400 8,400 4,800 4,800 4,800
	84,000		84,000

Additional Information: Sales Rs. 25,200

4.(a) From the following information, prepare the balance sheet of X company showing the details of working:

Paid up capital	50000
Plant and Machinery	125000
Total sales per annum	500000
Gross profit margin	25%
Annual credit sales	80% of net sales
Current Ratio	2
Inventory Turnover	4
Fixed assets turnover	2
Sales Return	20% of sales
Average collection period	73 days
Bank credit to trade credit	3:2
Cash to inventory	1:15
Total debt to current Liability	3