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Class 12 Commerce Formula Sheet
Best for: Students searching quick formulas before a test or board-style practice.
This formula sheet gives Commerce students a quick revision path for the formulas that usually create confusion in Economics and Accountancy numericals. Use it with the calculators and chapter notes on Smit Sir Commerce.
Economics formulas
- MPC = Change in Consumption / Change in Income
- MPS = Change in Saving / Change in Income
- MPC + MPS = 1
- Multiplier = 1 / MPS or 1 / (1 - MPC)
- Price Elasticity of Demand = Percentage change in quantity demanded / Percentage change in price
- AR = TR / Quantity
- MR = Change in TR / Change in Quantity
- Profit = Total Revenue - Total Cost
Accountancy ratio formulas
- Current Ratio = Current Assets / Current Liabilities
- Quick Ratio = Quick Assets / Current Liabilities
- Debt Equity Ratio = Debt / Equity
- Gross Profit Ratio = Gross Profit / Net Sales × 100
- Net Profit Ratio = Net Profit / Net Sales × 100
How to revise formulas properly
Do not only memorise the formula. First identify what the question is asking, write the formula, put the values carefully, then interpret the answer in words. This avoids common mistakes in Economics and Accountancy numericals.
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Quick answers
Which formulas are most useful for Commerce students?
MPC, MPS, multiplier, elasticity, revenue, cost and accounting ratios are among the most useful formulas for Commerce revision.
Should I use calculators directly?
Use calculators after understanding the formula so you can solve the same type of question in exams without depending on tools.
More free Commerce help
Study Material · CBSE Notes · GSEB Economics PDFs · Commerce Tools · Commerce Games