Question 07 Chapter 4 of +2-B – USHA Publication 12 Class

Question 07 Chapter 4 of +2-B

I. Liquidity Ratios

7. (Current Ratio/W.C. given) Current Assets ₹ 20,00,000
Inventory ₹ 8,00,000
Working Capital ₹ 13,00,000
Calculate the current ratio

The solution of Question 07 Chapter 4 of +2-B: – 

 

Current Assets	=	₹ 20,00,000
Working Capital	=	Working Capital
Current Liabilities	=	Current Assets – Working Capital
	=	₹ 20,00,000 – ₹ 13,00,000
Current Assets	=	₹ 7,00,000

 

Current Ratio=	Current Assets
	Current Liabilities

 

Current Ratio=	₹ 20,00,000
	₹ 7,00,000

Current Ratio=2.85:1

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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