RATIO ANALYSIS

-
RATIO ANALYSIS

It is a report which is used by management of company to know status of company or whole performance of company.

Some important ratios are as follow:

    1)    Current ratio:- it shows the ratio between current assets and current liabilities.
Current ratio = current assets/current liabilities

    2)    Quick ratio:- it is the good indicator of liquidity.

Quick ratio = current assets – stock in hand/ current liability

    3)    Gross profit ratio:- by using this ratio a businessman can find out earning capacity of his business.

Gross profit ratio = gross profit * 100/ net sales

    4)    Net profit ratio:- by using this ratio a businessman can find out net profit of his company.
Net profit = net profit * 100/ net sales

Create ledger and voucher entries and then to view the report of ratio analysis follow the path:

To view ratio analysis:- G.O.T.(gateway of tally) --> ratio analysis.


Comments

Post a Comment

Popular posts from this blog

What is year end provisions and how to Enter in Tally?

-
Image
What is year end provisions and how to Enter in Tally? A provision is an amount set aside from a company's profits to cover and expected liability or a decrease in the value of an asset, even though the specific amount might be unknown. A provision is not a form of savings, instead, it is a recognition of an upcoming liability. First we know about what is provision expenditure and liabilities which is payable to next year. Provision is the year ended expenditure or liability which will be payable to next year e.g. Salary Payable (for March), Bonus Payable, Leave Encashment Payable or all other expenses which will be paid in next year but period of expenses is current year. Suppose you have telephone bill for the month of March but it is paid in April, it means expenses incurred in March (which is year end) and paid in April so in this case we pass a journal entry like: Dr. Telephone Expenses  Cr. Expenses Payable or Telephone Expenses Payable In case of Salary ...
Read more

How to charge Freight, Transportation, Packing or any other Expenses in GST Invoice?

-
Image
How to charge Freight, Transportation, Packing or any other Expenses in GST Invoice? Recently we have so much query about how to show freight, transportation, packing or any other expenses in GST invoice with Tax Liability. For Example: Ramesh sold goods of Rs. 50000 to Suresh and charge freight charge seperatly in invoice @ 1.5% of total sale value then CGST and SGST @ 9% each. Then entry will be like below: Dr. Suresh Rs. 59750 Cr. Taxable Sales             Rs. 50000 Cr. Freight             Rs. 750 Cr. CGST @ 9%             Rs. 4500 Cr. SGST @ 9%             Rs. 4500 Now we see how to calculate Freight automatically on value or on quantity.  For Create Freight Ledger - Go ...
Read more

LEARN TALLY + ACCOUNTS

-
                                                        LEARN TALLY + ACCOUNT INTRODUCTION TALLY - INTRO EARLIER VERSION COMPANY FEATURES        INVENTORY SYSTEM STOCK ITEM ENTRY GODOWNS LEDGERS & VOUCHER LEDGERS LEDGERS LIST ACCOUNTING VOUCHERS JOURNAL PAYMENT RECEIPT  CONTRA SALES PURCHASE CREDIT & DEBIT NOTE SALES & PURCHASE ORDERS DIRECT TAXATION TDS (TAX DEDUCTED AT SOURCE) GST (GOODS & SERVICE TAX) INTRODUCTION GST RATE LIST GSTIN NUMBER FORMAT LEDGER & VOUCHER ENTRIES GST (SERVICE TAX) GST REPORT PRACTICE QUESTIONS PAYROLL SYSTEM PAYROLL INFO. ATTENDANCE VOUCHER PAYROLL VOUCHER PAYSLIP COST CATEGORY & CENTER REPORTS BALA...
Read more