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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Calculate Quick Ratio and Debt-Equity Ratio from the following information (CBSE 2024):
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| Total Debt | 8,00,000 | Working Capital | 2,40,000 |
| Inventory | 2,20,000 | Shareholders’ Funds | 12,00,000 |
| Long-term Debts | 6,00,000 |
Current Liabilities = Total Debt − Long-term Debts = 8,00,000 − 6,00,000 = ₹2,00,000
Current Assets = Current Liabilities + Working Capital = 2,00,000 + 2,40,000 = ₹4,40,000
Quick Assets = Current Assets − Inventory = 4,40,000 − 2,20,000 = ₹2,20,000
Quick Ratio = Quick Assets ÷ Current Liabilities = 2,20,000 ÷ 2,00,000 = 1.1 : 1
Debt-Equity Ratio = Long-term Debts ÷ Shareholders’ Funds = 6,00,000 ÷ 12,00,000 = 0.5 : 1
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 3 Chapter 4 Q.172 - Accounting Ratios", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Accounting Ratios.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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