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Question 139 Chapter 4 of +2-B
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Table of Contents
Miscellaneous
139. From the following calculate:
(a) Current Ratio; and (b) Working Capital Turnover Ratio.
| Rs | |
| i Revenue from Operations | 1,50,000 |
| ii Total Assets | 1,00,000 |
| iii Shareholders’ Funds | 60,000 |
| iv Non-current Liabilities | 20,000 |
| v Non-current Assets | 50,000 |
The solution of Question 139 Chapter 4 of +2-B: –
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| Current Assets | = | Total Assets – Non Current Assets |
| = | Rs. 1,00,000 – Rs 50,000 | |
| = | Rs 50,000 | |
| Total Liabilities | = | Shareholders’ Funds + Non Current Liabilities + Current Liabilities |
| Rs 1,00,000 | = | Rs. 60,000 + Rs 20,000 + Current Liabilities |
| Current Liabilities | = | Rs 1,00,000 – Rs 80,000 |
| = | Rs 20,000 |
| Current Ratio | = | Current Assets |
| Current Liabilities |
| Current Ratio | = | Rs. 50,000 |
| Rs 20,000 | ||
| = | 2.5 : 1 |
| Working Capital | = | Current Assets – Current Liabilities |
| = | Rs 50,000 − Rs 20,000 | |
| = | Rs 30,000 |
| Working Capital Turnover Ratio | = | Revenue from Operations |
| Working Capital |
| = | Rs 1,50,000 | |
| Rs 30,000 | ||
| = | 5 Times |
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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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
