Question 01 Chapter 4 of +2-B – USHA Publication 12 Class

Q 1 CH 4 Book 2 Usha Pub. 2 Book 2020 Solution min 1024x576 - Question 01 Chapter 4 of +2-B  - USHA Publication  12 Class

Question 01 Chapter 4 of +2-B

I. Liquidity Ratios

1. (Current Ratio) From the following calculate the current ratio.

Balance Sheet of XYZ Company LTD. As of 31st March 2018
Particular
I. Equity and Liabilities   
Shareholders’ Funds  
Share Capital 21,000
Reserve and Surplus   
surplus in Statement of Profit and Loss 2,500
Reserves 1,500
Current Liabilities  
Short-term Borrowings :  
Bank Overdraft 2,000
Trade Payable 6,000
  33,000
II. Assets  
Non-Current Assets  
Tangible Assets  
Fixed Assets (Net) 17,000
Current Assets  
Inventories 6,200
Trade Receivable 3,200
Input CGST 1,500
Input SGST 1,500
Cash 3,600
  33,000

 

The solution of Question 01 Chapter 4 of +2-B: – 

 

Current Assets = Inventories + Trade Receivable + Input CGST + Input SGST + Cash
  = ₹ 6,200 + ₹ 3,200 + ₹ 1,500 + ₹ 1,500 + ₹ 3,600
  = ₹ 16,000

 

Current Liabilities = Bank Overdraft + Trade Payable
  = ₹ 2,000 + ₹6,000
  = ₹ 8,000

 

Current Ratio= Current Assets
Current Liabilities

 

Current Ratio= 16,000
8,000


Current Ratio=2:1

What are Liquidity Ratios – Formulas and Examples

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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T.S. Grewal’s Analysis of Financial Statements

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