Question 03 Chapter 4 of +2-B – USHA Publication 12 Class

Question 03 Chapter 2 of +2-B

Question 03 Chapter 4 of +2-B

I. Liquidity Ratios

3. (Current Ratio) Find out current ratio.
Trade Receivable ₹ 33,000; Provision for Bad Debts ₹ 3,000 ; Stock twice of net Debtors ; Cash in hand ₹ 16,000 ; Advance to suppliers ₹ 15,000 ; Trade Payable ₹ 35,000 ; Outstanding expenses ₹ 15,000 ; Prepaid expenses ₹ 5,000 Investment (Long term) ₹ 12,000.

The solution of Question 03 Chapter 4 of +2-B: – 

 

Current Assets = Trade Receivable + Stock + Cash Advance to suppliers + Prepaid expenses
₹ 2,50,000 = ₹ 33,000 + ₹ 60,000* + ₹ 16,000 + ₹ 15,000 + ₹ 5,000
Current Assets = ₹ 1,26,000

 

Current Liabilities = Trade Payable + Outstanding expenses
  = ₹ 35,000 + ₹ 15,000
Current Liabilities = ₹ 50,000

 

Current Ratio= Current Assets
Current Liabilities

 

Current Ratio= 1,26,000
50,000


Current Ratio=2.52:1

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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