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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Current Ratio 4; Liquid Ratio 2.5; Inventory ₹6,00,000. Calculate the Current Liabilities, Current Assets, and Liquid Assets.
Let Current Liabilities = x. Current Assets = 4x; Quick (Liquid) Assets = 2.5x.
Inventory = Current Assets − Liquid Assets
6,00,000 = 4x − 2.5x = 1.5x
x = ₹4,00,000
Current Liabilities = x = ₹4,00,000
Current Assets = 4 × 4,00,000 = ₹16,00,000
Liquid Assets = 2.5 × 4,00,000 = ₹10,00,000
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.23 - 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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