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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A company had Current Assets of ₹4,50,000 and Current Liabilities of ₹2,00,000. Afterwards, it purchased goods for ₹30,000 on credit. Calculate the Current Ratio after the purchase.
Before the purchase: Current Assets ₹4,50,000, Current Liabilities ₹2,00,000.
After the purchase (Inventories and Trade Payables both increase by ₹30,000):
Current Ratio = (Current Assets + 30,000) ÷ (Current Liabilities + 30,000)
Current Ratio = (4,50,000 + 30,000) ÷ (2,00,000 + 30,000)
Current Ratio = 4,80,000 ÷ 2,30,000 = 2.09:1
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.3 - 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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