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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Current Liabilities of a company were ₹1,75,000 and its Current Ratio was 2:1. It paid ₹30,000 to a Creditor. Calculate the Current Ratio after the payment.
Before payment: Current Ratio = 2:1, Current Liabilities = ₹1,75,000, so Current Assets = 1,75,000 × 2 = ₹3,50,000.
After payment to Creditor (Cash and Trade Payables both decrease by ₹30,000):
Current Ratio = (3,50,000 − 30,000) ÷ (1,75,000 − 30,000) = 3,20,000 ÷ 1,45,000 = 2.21:1
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.9 - 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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