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What is meant by Ratio?

Post category:Accountancy
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SOLUTION

Relationship between two figures expressed in arithmetical terms is called a ratio. A ratio is simply one number expressed in terms of another. It can be expressed in the form of fractions, rate or percentages.

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On dissolution of a firm, its Balance Sheet revealed total creditors Rs. 50,000; Total Capital Rs. 48,000; Cash Balance Rs. 3,000. Its assets were realised at 12% less. What will be loss on realisation?

Give two circumstances in which sacrificing ratio may be applied.

State whether the following will increase, decrease or have no effect cash flow from operating activities while preparing ‘Cash Flow Statement’: (i) Decrease in outstanding employees benefits expenses by Rs. 3,000; (ii) Increase in prepaid insurance by Rs. 2,000. (C.B.S.E. 2017)

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