Q 1 CH 4 Book 2 Usha Pub. 2 Book 2020 Solution min - 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 Capital21,000
Reserve and Surplus  
surplus in Statement of Profit and Loss2,500
Reserves1,500
Current Liabilities 
Short-term Borrowings : 
Bank Overdraft2,000
Trade Payable6,000
 33,000
II. Assets 
Non-Current Assets 
Tangible Assets 
Fixed Assets (Net)17,000
Current Assets 
Inventories6,200
Trade Receivable3,200
Input CGST1,500
Input SGST1,500
Cash3,600
 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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 01 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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