Question 05 Chapter 4 of +2-B

Question 05 Chapter 4 of +2-B

I. Liquidity Ratios

5. (Current Ratio when Capital Employed is given)

Total Assets₹ 6,00,000
Fixed Assets₹ 3,00,000
Capital employed₹ 4,50,000

The solution of Question 05 Chapter 4 of +2-B: – 


Current Assets=Total Assets – Fixed Assets
 =₹ 6,00,000 – ₹ 3,00,000
Current Assets=₹ 3,00,000


Current Liabilities=Trade Payable + Overdraft
 =₹ 6,00,000 + ₹ 4,50,000
Current Liabilities=₹ 1,50,000


Current Ratio=Current Assets
Current Liabilities


Current Ratio=3,00,000

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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