Question 01 Chapter 4 of +2-B
Table of Contents
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= | |
| 8,000 |
Current Ratio=2:1
What are Liquidity Ratios – Formulas and Examples
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Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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