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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Calculate the Quick Ratio from the following:
Working Capital ₹4,00,000; Total Debts ₹18,00,000; Non-Current Liabilities ₹16,00,000; Inventories ₹1,90,000; Prepaid Expenses ₹10,000.
Current Liabilities = Total Debts − Non-Current Liabilities = 18,00,000 − 16,00,000 = ₹2,00,000
Current Assets = Current Liabilities + Working Capital = 2,00,000 + 4,00,000 = ₹6,00,000
Quick Assets = Current Assets − (Inventories + Prepaid Expenses) = 6,00,000 − (1,90,000 + 10,000) = ₹4,00,000
Quick Ratio = Quick Assets ÷ Current Liabilities = 4,00,000 ÷ 2,00,000 = 2:1
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.28 - 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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