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From the given… (Class 12 Accountancy SQP 2026-27, Q33B)

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AccountancyCBSE Class 12 · Sample paper, session 2026-27 · 4 marks · Long answer

CBSE Class 12 Accountancy sample paper 2026-27: question 33(B)

From the official CBSE sample question paper for 2026-27, section B-I, question 33(B), for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q33(B) · 4 marks · Long answerAccounting Ratios

From the given information, calculate the following ratios:
I. Current ratio
II. Inventory Turnover ratio

Information: Revenue from operations (Net sales) ₹ 5,00,000, opening inventory ₹7,000, closing inventory ₹ 4,000 more than the opening inventory, net purchase is 70% of revenue from operations, operating expenses ₹ 30,000, liquid assets ₹ 75,000, wages ₹ 10,000, salaries ₹ 20,000, carriage inwards ₹ 40,000, prepaid expenses ₹2,000, current liabilities ₹ 60,000, 9% debentures ₹ 3,00,000, long - term loan from bank ₹ 1.00,000, equity share capital ₹ 10,00,000 and 8% preference share capital ₹2,00,000.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

Open one hint at a time and try again before the next.

Hint 1

Liquid assets leave out inventory and prepaid expenses; add them back for current assets.

Hint 2

Only direct expenses (wages, carriage inwards) go into cost of revenue.

Hint 3

Salaries and operating expenses are not part of cost of revenue.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Closing inventory = ₹ 7,000 + ₹ 4,000 = ₹ 11,000. Current assets = liquid assets ₹ 75,000 + inventory ₹ 11,000 + prepaid expenses ₹ 2,000 = ₹ 88,000.

    1 mark

  2. Current ratio = ₹ 88,000 / ₹ 60,000 = 1.47 : 1.

    1 mark

  3. Purchases = 70% × ₹ 5,00,000 = ₹ 3,50,000. Cost of revenue = 7,000 + 3,50,000 + wages 10,000 + carriage inwards 40,000 − 11,000 = ₹ 3,96,000. Average inventory = (7,000 + 11,000)/2 = ₹ 9,000.

    1 mark

  4. Inventory turnover ratio = ₹ 3,96,000 / ₹ 9,000 = 44 times.

    1 mark

Answer: Current ratio 1.47 : 1; inventory turnover ratio 44 times

Where the marks are

  • Current assets ₹ 88,000 (1 mark)
  • Current ratio (1 mark)
  • Cost of revenue and average inventory (1 mark)
  • Inventory turnover ratio (1 mark)

Revise the chapter

  • Chapter: Accounting Ratios (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Accounting Ratios, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.