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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Current Assets of a company are ₹5,00,000. Its Current Ratio is 2.5:1 and Quick Ratio is 1:1. Calculate the value of Current Liabilities, Liquid Assets, and Inventory.
Current Liabilities = Current Assets ÷ Current Ratio = 5,00,000 ÷ 2.5 = ₹2,00,000
Liquid Assets = Current Liabilities × Quick Ratio = 2,00,000 × 1 = ₹2,00,000
Inventory = Current Assets − Liquid Assets = 5,00,000 − 2,00,000 = ₹3,00,000
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.26 - 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.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Vol 3 Chapter 4 Q.26 - Accounting Ratios" instantly.