Accounting Ratios Class 12 All Formulas PDF

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Accounting Ratios Class 12 All Formulas PDF Free Download


Accounting Ratios Chapter 4

Accounting Ratio: It is an arithmetical relationship between two accounting variables.
Ratio Analysis: It is a technique of analysis of financial statements to conduct a quantitative analysis of information in a company’s financial statements.
“Ratio analysis is a study of the relationship among various financial factors in a business.”

  1. Current Assets = Current Investments (also known as Market table Securities or S.T. Investment)
  • Inventories (except Loose Tools & Stores and Spares)
  • Trade Receivables (Debtors and B.R.) Net after provision for bdd.
  • Cash and Cash Equivalents (Cash and Bank Balances)
  • Short-Term Loans and Advances
  • Other Current Assets (Prepaid Expenses, Accrued Income & Advance Tax)
  1. Current Liabilities = Short-Term Borrowings (Bank Overdraft and Cash Credit)
  • Trade Payables (Creditors and B.P.)
  • OtherCurrent Liabilities (O/s Expenses, Income Received in Advance, Unpaid or Ui claimed
  • Short-Term Provisions (Provision for Tax, Proposed Dividend)
  1. Liquid Assets = Current Assets
  • Inventory (closing)
  • Other Current assets (Prepaid Expenses, Accrued Income & Advance Tax)
  1. Working Capital = Current Assets – Current Liabilities
  2. Total Assets = Non-Current Assets + Current Assets
  3. Total Liabilities = Non-Current Liabilities + Current Liabilities
  1. Non-Current Assets = Fixed Assets (tangible and intangible)
  • Non-Current Investments
  • Long Term Loans & Advances (Capital Advances, Security Deposits)
  1. Non-Current Liabilities = Long Term Loans( Debentures, Bank Loans,Bonds)
  • Long Term Provisions (Provision for employee benefit & Warranties)
  1. Capital Employed = Shareholders Fund
  • Borrowed Fund (Non-Current Liabilities)
  1. Capital Employed = Total Assets – Current Liabilities = Non-Current Assets + Working Capital
  2. Shareholders Fund = Share Capital
  • Reserves and Surplus Non-Current Non-Trade Investments
  • Shareholders Fund = Total Assets – Non-Current Liabilities – Current/liabilities
Language English
No. of Pages17
PDF Size3.5 MB

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