Twenty-two named ratios across four categories: liquidity, solvency, activity, and profitability, packed into an 8-page scanned blue-ink notebook. These Accounting Ratios class 12 accountancy handwritten notes from Collegedunia reproduce every formula, its numerator and denominator definition, and the slip warnings the CBSE Part B paper repeats yearly, sized for last-day revision.
- CBSE Weightage (Part B): 8 to 12 marks, the single highest-scoring chapter in the Analysis of Financial Statements unit.
- CUET / commerce-stream relevance: High, with a recurring numerical on Current, Debt-Equity, Inventory Turnover, and Net Profit ratios.
- Notebook pages in this PDF: 8 pages, scanned blue-ink notebook format.
The chapter turns the regrouped financial statements into ratios that read a firm's liquidity, solvency, efficiency, and earning power. These notes keep all twenty-two formulae on one foldable spread.
These handwritten notes are curated by subject experts, mapped to the 2026-27 NCERT and refined against the last five years of CBSE Board Accountancy papers.
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How will Collegedunia's Handwritten Notes Help You with Accounting Ratios?
Accounting Ratios is the most formula-dense chapter in Class 12 Accountancy Part B, and the marks are lost in the denominator, not the concept. These Accounting Ratios class 12 accountancy handwritten notes are written for the student who has read the typeset Notes once and now needs a fast-recall booklet.
- All 22 Formulae, Hand-Boxed: Every ratio carries its exact numerator and denominator, so you never confuse Quick Assets with Current Assets, or Cost of Revenue with Revenue from Operations.
- 2026-27 NCERT Alignment: The four-category split, the formula list, and the Schedule III item names match the current edition.
- Formula Recall: The high-error denominators, Net Credit Sales and Cost of Revenue from Operations, are circled in red.
- Last-Day Recall: Folded lengthwise the booklet rebuilds all four categories from memory in under three minutes.
Class 12 Accountancy Part 2 Chapter 5 Accounting Ratios Handwritten Notes
Source: Magnet Brains on YouTube
Accounting Ratios Class 12 Accountancy Handwritten Notes: What the 8 Pages Cover
The eight pages are themed, each anchored on one ratio category the CBSE Part B paper tests. Use the table as a contents map.
| Page | Focus | What you copy first |
|---|---|---|
| Page 1 | Meaning, objectives and the four ratio categories | The liquidity, solvency, activity, profitability split. |
| Page 2 | Liquidity ratios: Current and Quick Ratio | The ideal 2:1 and 1:1 benchmarks. |
| Page 3 | Solvency ratios: Debt-Equity, Proprietary, Interest Coverage | The Debt-Equity numerator and denominator. |
| Pages 4-5 | Activity and Profitability ratios | The Net Credit Sales rule and Operating Ratio. |
| Page 6 | Return on Investment and Capital Employed | The Capital Employed definition. |
| Pages 7-8 | Worked numerical, slip warnings, recall grid | The order of computation and red margin arrows. |
Every Hand-Drawn Diagram in the Accounting Ratios Notes PDF
This chapter is formula-led, so the booklet uses structured grids instead of sketches, indexed below by page.
| Page | Hand-drawn element | What it shows |
|---|---|---|
| Page 1 | Four-branch ratio category tree | Liquidity, Solvency, Activity, Profitability with member ratios on each branch. |
| Page 4 | Turnover-times to days conversion arrow | How a turnover ratio (times) converts to an average period (days). |
| Page 6 | Capital Employed building block diagram | The two routes to Capital Employed (liabilities side and assets side). |
| Page 8 | All-formula recall grid | All 22 ratios in a single boxed grid for the final read. |
Accounting Ratios: Last 24-Hour Revision Card for Class 12 Accountancy
Skim only these the night before the Accountancy Part B paper.
- Liquidity: Current Ratio = Current Assets / Current Liabilities (ideal 2:1); Quick Ratio = Quick Assets / Current Liabilities (ideal 1:1).
- Solvency: Debt-Equity = Debt / Shareholders' Funds; Interest Coverage = Profit before Interest and Tax / Interest.
- Activity: Inventory Turnover = Cost of Revenue from Operations / Average Inventory; Trade Receivables Turnover = Net Credit Sales / Average Trade Receivables.
- Profitability: Net Profit Ratio = (Net Profit / Revenue from Operations) × 100; Operating Ratio = (Cost of Revenue + Operating Expenses) / Revenue from Operations × 100.
- Denominator rule: turnover ratios use Net Credit figures and Cost of Revenue, never total Revenue.
How to Read These Accounting Ratios Handwritten Notes (Colour Legend)
The notebook uses a fixed colour convention so you can scan a page without reading every line.
| Ink / mark | Meaning |
|---|---|
| Blue ink | Standard formula, category headings, and the ratio category tree. |
| Red pen | High-error denominators and numerators, slip warnings, the figures students most often swap. |
| Green underline | Ideal benchmarks (2:1, 1:1) and the standard comment that earns the interpretation mark. |
| Yellow shading | The single step the CBSE marker most often penalises, usually a wrong base figure. |
Red ink always marks the figure that decides the mark, so a quick scan for red rebuilds the trap list for the whole chapter.
Accounting Ratios Top 6 Formulae for Quick Recall
The six formulae below are the ones the CBSE Part B paper builds numericals on most often. The full 22-ratio master table is on the Formula Sheet.
| Ratio | Formula |
|---|---|
| Current Ratio | Current AssetsCurrent Liabilities |
| Quick Ratio | Quick AssetsCurrent Liabilities |
| Debt-Equity Ratio | DebtShareholders' Funds |
| Inventory Turnover Ratio | Cost of Revenue from OperationsAverage Inventory |
| Net Profit Ratio | Net ProfitRevenue from Operations × 100 |
| Return on Investment | Profit before Interest and TaxCapital Employed × 100 |
Full master table: Accounting Ratios Class 12 Accountancy Formula Sheet
Accounting Ratios Self-Assessment Quiz for Class 12th Accountancy
Use these five questions as a two-minute final check. Answers are hidden until you click each line.
1. What are Quick Assets equal to?
Current Assets minus Inventory minus Prepaid Expenses (or Current Assets minus Inventory minus Prepaid Expenses minus Advance Tax, depending on the items given).
2. What is the denominator of the Inventory Turnover Ratio?
Average Inventory; the numerator is Cost of Revenue from Operations, not Revenue from Operations.
3. Which figure is used in the Trade Receivables Turnover Ratio numerator?
Net Credit Sales (Net Credit Revenue from Operations), not total sales.
4. State the ideal Current Ratio and Quick Ratio.
Current Ratio 2:1 and Quick Ratio 1:1.
5. Name the four categories of accounting ratios in NCERT order.
Liquidity, Solvency, Activity (Turnover), and Profitability ratios.
Accounting Ratios Most-Repeated Topics in CBSE Class 12 Accountancy Papers
Three topic clusters carry most of the 8 to 12 marks across recent papers. The full year-wise question map is on the NCERT Solutions page.
| Recurring topic | Typical ask |
|---|---|
| Liquidity ratios from a Balance Sheet | Compute Current and Quick Ratio, then comment on short-term solvency. |
| Debt-Equity and Proprietary ratios | Compute and interpret long-term solvency from given capital figures. |
| Turnover and profitability ratios | Inventory or Trade Receivables Turnover, plus Gross or Net Profit Ratio from a Statement of Profit and Loss. |
Full year-wise PYQ map: Accounting Ratios Class 12 NCERT Solutions
Best Way to Use These Accounting Ratios Handwritten Notes
These handwritten notes are a revision tool, not a first-read resource. A two-pass routine gets the most from the eight pages in the final week.
- Pass 1, category then formula: Redraw the Page-1 four-branch tree from memory, then write every member ratio's formula under its branch. This locks classification, which the marker reads first.
- Pass 2, denominators and traps: Recite the high-error definitions aloud, Quick Assets, Net Credit Sales, Cost of Revenue from Operations, then read the Page-8 slip warnings. This protects the marks the chapter actually loses.
Six Frequent Accounting Ratios Slip Warnings: Page 8 Red-Pen Margin Arrows
Page 8 collects the errors that cost the most marks, each drawn as a red margin arrow next to the formula it applies to.
Related Resources for Class 12 Accountancy Part 2 Chapter 5
The same chapter is available across the full Collegedunia NCERT resource set.
- Accounting Ratios Class 12 Notes
- Accounting Ratios Class 12 NCERT Solutions
- Accounting Ratios Class 12 NCERT Book PDF
- Accounting Ratios Class 12 Formula Sheet
NCERT Handwritten Notes for Class 12 Accountancy: All Chapters
Jump to the handwritten notes for any other Class 12 Accountancy chapter.
| Chapter | Resource |
|---|---|
| Chapter 1 | Accounting for Partnership: Basic Concepts Handwritten Notes |
| Chapter 2 | Reconstitution: Admission of a Partner Handwritten Notes |
| Chapter 3 | Reconstitution: Retirement or Death of a Partner Handwritten Notes |
| Chapter 4 | Dissolution of Partnership Firm Handwritten Notes |
| Part 2 Chapter 1 | Accounting for Share Capital Handwritten Notes |
| Part 2 Chapter 2 | Issue and Redemption of Debentures Handwritten Notes |
| Part 2 Chapter 3 | Financial Statements of a Company Handwritten Notes |
| Part 2 Chapter 4 | Analysis of Financial Statements Handwritten Notes |
| Part 2 Chapter 6 | Cash Flow Statement Handwritten Notes |
Accounting Ratios Class 12 Accountancy Handwritten Notes FAQs
Ques. Where can I download the Accounting Ratios class 12 accountancy handwritten notes PDF?
Ans. You can download the Accounting Ratios Class 12 Accountancy Handwritten Notes PDF directly from this page. The scanned blue-ink booklet runs eight pages and is free, sized for last-day CBSE revision after one read of the typeset Notes.
Ques. What does the Accounting Ratios handwritten notes PDF contain?
Ans. Eight ruled pages: the meaning and four categories of ratios, all liquidity, solvency, activity and profitability formulae with their exact numerator and denominator definitions, one worked numerical, and a Page-8 slip-warning grid plus an all-formula recall block.
Ques. What are the four types of accounting ratios in Class 12 Accountancy?
Ans. The NCERT classifies ratios into four categories: Liquidity ratios (Current, Quick), Solvency ratios (Debt-Equity, Proprietary, Interest Coverage), Activity or Turnover ratios (Inventory, Trade Receivables, Trade Payables, Working Capital), and Profitability ratios (Gross Profit, Operating, Net Profit, Return on Investment).
Ques. What is the difference between the Current Ratio and the Quick Ratio?
Ans. The Current Ratio is Current Assets divided by Current Liabilities and its ideal is 2:1. The Quick Ratio (Liquid or Acid-Test Ratio) is Quick Assets divided by Current Liabilities with an ideal of 1:1, where Quick Assets exclude Inventory and Prepaid Expenses, so it tests immediate short-term solvency more strictly.
Ques. How many pages is the Class 12th Accountancy Accounting Ratios handwritten notes PDF?
Ans. The handwritten notes PDF runs eight pages and covers the four ratio categories, all twenty-two formulae with their definitions, one worked numerical from a Balance Sheet, and the percentage-base and denominator traps the CBSE Part B paper tests.
Ques. Is this resource aligned with the 2026-27 NCERT?
Ans. Yes. The booklet reflects the current 2026-27 syllabus for Class 12 Accountancy Part B. The four-category classification, the formula list, and the Schedule III item names used in the numerators and denominators all match the new NCERT edition.
Ques. Are handwritten notes enough to cover Accounting Ratios for CBSE 2026?
Ans. The handwritten notes are a final-day revision aid, not a first-read resource. Pair them with the Collegedunia typeset Notes PDF and at least six solved ratio numericals from the NCERT textbook and Solutions for full 8 to 12 mark coverage in the Accountancy Part B paper.
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