Question 1 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 1 Chapter 4 of +2-B

Question 1 Chapter 4 of +2-B

Current Ratio and Quick Ratio

1. From the following, compute Current Ratio:

  Amount   Amount
Trade Receivables (Sundry Debtors) 1,80,000 Bills Payable 20,000
Prepaid Expenses 40,000 Sundry Creditors 1,00,000
Cash and Cash Equivalents 50,000 Debentures  4,00,000
Marketable Securities 50,000 Inventories  80,000
Land and Building 5,00,000 Expenses Payable 80,000

Hint: Marketable Securities means the Short-term Investment.

The solution of Question 1 Chapter 4 of +2-B: – 

 

Current Assets= Trade Receivables + Pre-paid Expenses + Cash and Cash Equivalents + Marketable Securities + Inventories

 

= Rs. 1,80,000 + Rs. 40,000 + Rs. 50,000 + Rs. 50,000 + Rs. 80,000

 

Current Assets= Rs. 4,00,000

 

Current Liabilities= Bills Payable + Sundry Creditors + Expenses Payable  

 

Current Liabilities= Rs. 20,000 + Rs.1,00,000 + Rs.80,000

 

Current Liabilities= Rs. 2,00,000

 

Current Ratio= Current Assets
Current Liabilities

 

Current Ratio= 4,00,000
2,00,000

 

Current Ratio=2:1

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

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

2 Book 3 min 225x300 - Question 1 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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